Crude oil futures displayed stability during European morning trading hours on Tuesday after dipping to their lowest levels since early June.
As of 0825 GMT, the front-month September 2024 ICE Brent futures were priced at $79.92 per barrel, recovering from a daily low of $79.34 and slightly above Monday’s close of $79.78. Similarly, September 2024 NYMEX WTI futures were trading at $75.94 per barrel, up from Monday’s settlement of $75.81.
These recent lows follow a period of decline, largely attributed to the OPEC+ decision to gradually reduce production cuts starting in October. The market’s downturn in July has been driven by concerns over China’s economic slowdown, which is anticipated to negatively impact global oil demand.
Phil Flynn of The Price Futures Group noted, “The crude oil market is struggling to recover despite indications of tightening supplies. Persistent worries about the Chinese economy continue to impede progress, although U.S. demand remains strong.”
In related economic updates, Citi has downgraded its growth forecast for China to 4.8% for the year, down from 5%. This adjustment follows Beijing’s failure to meet its Q2 targets and a further softening of economic activity in July.
Attention remains on the Middle East, though current events have not yet posed an immediate threat to oil supplies. Israeli Prime Minister Benjamin Netanyahu has vowed a “harsh” response to the recent rocket attack on the Golan Heights, asserting that Israel will not overlook the incident and will act decisively.
