Oil Falls by 5% as Israel May Spare Iran's Oil Sites
WTI crude oil futures slumped 5% toward $70 per barrel on Tuesday, after reports suggested that Israel might avoid targeting Iran’s oil infrastructure, alleviating fears of a major supply disruption in the region. Israel indicated it may heed US warnings and focus on military rather than energy targets in Iran, though tensions remain high. Also, the IEA cut its demand growth forecasts, citing near-record spare capacity in OPEC+ and slowing demand in major markets like China. World oil demand is projected to increase by just under 900,000 bpd in 2024 and 1 million bpd in 2025, marking a slowdown from the 2 million bpd growth seen after the pandemic. Chinese oil demand is particularly weak, with consumption falling by 500,000 bpd in August for the fourth consecutive month. Meanwhile, crude production in the Americas is expected to rise by 1.5 million bpd this year and next. On Monday, OPEC lowered its global oil demand forecast for 2024 and 2025 for the third consecutive month.