Crude oil futures fell more than 5% on Tuesday as next year’s looming global oil surplus overshadowed the risk of supply disruptions from the conflict between Israel and Iran.
Oil prices soared earlier this month after Iran launched a ballistic missile attack on Israel, raising fears that Israel would strike back by targeting the Islamic Republic’s oil facilities.
The International Energy Agency said on Tuesday that member states were prepared to take action if there were supply disruptions in the Middle East.
“For now, supplies continue and, barring major disruptions, the market will face a significant surplus in the new year,” the IEA said in its monthly report.
Here are today’s energy prices as of 9:52 a.m. ET.
west texas intermediate November contract: $70.08 per barrel, down $3.74 (5.07%). Since the beginning of the year, US crude oil prices have fallen 2%.brent December contract: 1 barrel = $73.79, down $3.67 (4.7%). Year-to-date, global benchmarks are down about 4%.RBOB gasoline November contract: $2.014 per gallon, down 4.47%. Gasoline prices have fallen nearly 4% since the beginning of the year.natural gas November contract: $2.528 per 1000 cubic feet, up 1.36%. Gasoline prices have fallen nearly 2% since the beginning of the year.
According to the IEA, global oil demand is expected to increase by just under 900,000 barrels per day in 2024 and just under 1 million barrels per day in 2025, significantly compared to the 2 million barrel per day increase post-pandemic. to slow down.
China’s oil demand has been particularly weak, the agency said, with consumption falling by 500,000 barrels per day in August, the fourth consecutive month of decline. Meanwhile, crude oil production in the Americas, led by the United States, is expected to increase by 1.5 million barrels per day between this year and next, according to the IEA.
OPEC has revised down its oil production forecast for 2024 for the third consecutive month.