Oil Prices Dip Amid Global Economic Concerns And Middle East Tensions
Date
9/30/2024 7:00:20 PM
(MENAFN- The Rio Times) Oil prices fell on Monday as investors weighed multiple factors affecting the global market.
The commodity fluctuated throughout the trading session, reflecting concerns about China's economic slowdown and worldwide economic deceleration.
Traders closely monitored the escalating conflict between Israel and Hezbollah, which heightened tensions in the Middle East.
The market also anticipated a potential increase in oil supply as OPEC+ countries considered ending voluntary production cuts.
On the New York Mercantile Exchange, WTI crude for November delivery closed nearly flat, dropping 0.01% to $68.18 per barrel.
Brent crude for December delivery on the Intercontinental Exchange fell 0.29% to $71.77 per barrel. Both benchmarks recorded significant losses for the month and quarter.
WTI crude declined 7.3% in September and 16.3% for the quarter. Brent crude dropped 6.7% for the month and 15.5% over the three-month period.
Oil Market Dynamics
The ongoing Middle East conflict raised concerns about potential supply disruptions, briefly pushing prices up by nearly 1% during the session.
However, worries about increased OPEC+ production and global economic slowdown ultimately outweighed these concerns, leading to a price decline.
Ritterbusch and Associates noted that Saudi Arabia's decision to increase production in December would likely exert downward pressure on oil prices in the coming weeks.
The firm predicted that prices could continue to fall throughout October if major producers confirm production increases.
Investors remained cautious as they balanced geopolitical risks against economic uncertainties. The oil market's volatility reflected the complex interplay of supply, demand, and geopolitical factors shaping the global energy landscape.
As the situation in the Middle East continues to evolve, market participants will closely monitor developments for potential impacts on oil supply and prices.
The upcoming OPEC+ decisions and global economic indicators will also play crucial roles in determining the future direction of oil prices.
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