The market continues to wait for Israel’s response to Iran’s missile attack,” ING analysts said on Wednesday, adding the price strength on Tuesday was possibly due to the lack of outcome from U.S. Secretary of State Antony Blinken’s latest visit to Israel.
Oil prices steadied near $74 a barrel on Tuesday as the top U.S. diplomat renewed efforts to push for a ceasefire in the Middle East and as slowing demand growth in China, the world’s top oil importer, continued to weigh.
Oil prices rose on Monday, recouping some of last week’s more than 7% decline, with no let up of fighting in the Middle East and the expectation of retaliatory Israeli attacks on Iran worrying markets about supply from the region.
In a Thursday note, the bank’s commodities team shared a cautious view on oil due to several factors influencing the market, including OPEC’s supply dynamics and non-OPEC production growth.
Oil steadied on Wednesday, supported by OPEC+ cuts and uncertainty over what may happen next in the Middle East conflict, although an outlook for ample supply next year added downward pressure.
Oil prices slid as much as $3 to a near two-week low during Asian trade on Tuesday on the back of a weaker demand outlook and after a media report said Israel is willing not to strike Iranian oil targets, which eased fears of a supply disruption.
Oil prices declined about 2% on Monday, wiping out all of last week’s gains, as OPEC’s lowering of its 2024 and 2025 global oil demand growth view again added to concerns of weak fuel demand with China’s oil imports falling for a fifth month in a row.
That said, for the week, both benchmarks were headed for gains of around 1%, the second straight positive week, with oil markets remaining supported by concerns over an escalation in Israel’s conflicts with both Hamas and Hezbollah.
Oil extended losses on Wednesday as weak demand and rising U.S. inventories countered the risk of supply disruption from conflict in the Middle East and Hurricane Milton in the United States.
Oil prices fell on Monday, after posting their steepest weekly rise in more than a year last week, as oversupply concerns amid softer demand countered the worries over a wider Middle East conflict disrupting exports in the key oil-producing region.
