Oil rates decline 2 percent over concerns of slowing economic growth
Date
8/28/2024 4:12:36 AM
(MENAFN) On Tuesday, oil prices saw a decline of around 2 percent, driven by concerns over the impact of slowing economic growth in the United States and China on energy demand. This drop comes after a significant price increase of more than 7 percent over the previous three days, highlighting the market's volatility.
Brent crude futures decreased by 1.6 percent, or USD1.31, to settle at USD80.12 per barrel. Similarly, U.S. West Texas Intermediate crude fell by 1.7 percent, or USD1.30, bringing the price to USD76.12 per barrel, reflecting the market's response to the anticipated decline in demand.
The recent sharp rise in oil prices was largely attributed to concerns over a potential shutdown of oil fields in Libya, which could significantly impact the country's production capacity of approximately 1.2 million barrels per day. This situation has heightened worries about supply constraints in the global oil market.
Additionally, analysts pointed to escalating tensions in the Middle East, particularly following a significant exchange of fire between Israel and the Hezbollah militia in Lebanon, which is allied with Iran. These geopolitical tensions are adding another layer of uncertainty to the already complex dynamics affecting oil prices.
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