Crude oil futures plummeted over 4% on Tuesday, as apprehensions of a global oil surplus next year eclipsed the threat of supply interruptions from the escalating conflict between Israel and Iran. Earlier this month, oil prices surged when Iran launched a ballistic missile attack on Israel, spurring concerns over potential Israeli retaliatory strikes on Iran’s oil infrastructure. The International Energy Agency (IEA) reassured that its members stand ready to respond in case of Middle Eastern supply disruptions. However, the IEA’s latest report indicated that, absent major disturbances, the market is bracing for a significant surplus next year.
As of 8:53 am ET, energy prices were as follows: West Texas Intermediate for November delivery fell to $70.61 per barrel, dropping by $3.22, or 4.4%. Since the start of the year, U.S. crude oil prices have decreased by 2%. Brent crude for December delivery was priced at $74.30 per barrel, dipping by $3.16, or 4.1%, with a year-to-date decline of around 4%. RBOB Gasoline for November dropped 3.78% to $2.029 per gallon, while year-to-date gasoline prices have retreated nearly 4%. Meanwhile, Natural Gas for November edged up 0.96% to $2.517 per thousand cubic feet, though having fallen nearly 2% over the year.
The IEA anticipates a slowdown in global oil demand growth, projecting less than 900,000 barrels per day (bpd) in 2024 and 1 million bpd in 2025, compared to the 2 million bpd surge seen post-pandemic. China’s oil demand appears particularly sluggish, with a consumption decline of 500,000 bpd in August, marking the fourth consecutive monthly drop. In contrast, crude production in the Americas, spearheaded by the U.S., is expected to boost by 1.5 million bpd this year and next. In response, OPEC has cut its oil forecast for 2024 for the third month running.
Original Story https://www.cnbc.com/2024/10/15/crude-oil-prices-today.html
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