Oil prices steadied in Asian trade on Tuesday, with the prospect of oversupply in the market amid weak global demand growth offsetting concerns that escalating conflict in the Middle East could disrupt exports in the key producing region.
price movement
Brent crude futures for December delivery rose 13 cents, or 0.18 percent, to $71.83 a barrel by 0050 GMT. U.S. West Texas Intermediate (WTI) crude futures for November delivery rose 11 cents, or 0.16 percent, to $68.28 a barrel.
Oil markets have been under pressure from weaker-than-expected demand growth this year, particularly in China, the world’s biggest importer of crude. Demand concerns were reinforced on Monday after data showed manufacturing activity in the world’s second-largest economy contracted for a fifth month in September.
Brent crude futures ended September down 9% yesterday, their third monthly decline and the biggest monthly drop since November 2022. They plunged 17% in the third quarter, their biggest quarterly loss in a year. West Texas Intermediate crude fell 7% last month and tumbled 16% in the third quarter.
Despite demand concerns, rising tensions between Israel and the militant Hezbollah group in Lebanon have raised the prospect of Iran being drawn directly into the conflict and potentially disrupting oil exports from the region. Iran is a major oil producer and a member of the Organization of the Petroleum Exporting Countries (OPEC).
The Israeli military said in a statement early Tuesday that it had begun limited, targeted raids on Hezbollah targets in the border area of southern Lebanon.
OPEC+, which includes OPEC members and allies such as Russia, is set to raise output by 180,000 barrels per day in December.
A Reuters poll yesterday forecast that U.S. crude oil and fuel inventories would fall by about 2.1 million barrels last week in the week ending Sept. 27.
