Oil prices steady after weekly drop with demand woes, M.East tensions in focus
2024.10.20 22:16
Investing.com– Oil prices steadied in Asian trade on Monday after clocking steep losses in the past week, with traders remaining focused on more cues on demand and potential supply disruptions in the Middle East.
Prices slid over 7% last week after underwhelming signals on more stimulus in top oil importer China, while concerns over China also saw both the OPEC and the IEA cut their demand forecasts.
Oil prices were also hit by the prospect of a less severe escalation in the Middle East war, as reports said Israel will not attack Iran’s oil or nuclear facilities. But Israel is still preparing to retaliate for an early-October strike, while hostilities with Hamas and Hezbollah persisted.
expiring in December rose 0.2% to $73.21 a barrel, while rose 0.3% to $68.90 a barrel by 21:33 ET (01:33 GMT).
Oil nurses over 7% weekly loss
Oil prices were nursing their worst week since early-September, as concerns over slowing demand, especially in top importer China, weighed on sentiment.
China announced its most targeted stimulus measures yet in the past month. But the measures inspired middling confidence among traders, given that Beijing did not provide details on the scale and timing of the planned measures.
The People’s Bank of China cut its benchmark slightly more than expected on Monday, although the move appeared to have provided little confidence to markets.
Data on Friday showed China’s economy grew at its slowest pace since early-2023 during the third quarter, keeping concerns over a demand slowdown squarely in play.
Middle East tensions persist
The Middle East conflict remained in focus, intensifying over the weekend as Israel kept up its offensive against Hamas and Hezbollah, in Gaza and Lebanon, respectively.
Israel also said it was planning to attack sites in Beirut with links to Hezbollah’s finances.
The Israel-Hamas war, which hit a one-year mark earlier in October, has been a key driver of oil prices, with traders attaching or removing a risk premium from prices based on the state of the conflict.
U.S. attempts at brokering a ceasefire have so far yielded few results.
