Its prices dropped almost 4% today oilafter the Washington Post reported that Israeli Prime Minister Benjamin Netanyahu assured US President Joe Biden that the Israel will only hit military targets and not its nuclear and oil installations Iran.
Brent, Europe’s benchmark, fell 3.54% to US$74.72 a barrel, and US oil also fell 3.5% to US$71.19.
At the beginning of last week, a barrel of Brent oil was trading at more than $80, in part due to fears of Israeli attacks on Iranian oil installations.
Manufacturer China
Brent had already fallen more than 2% yesterday, after OPEC revised downwards its forecasts for the growth of global oil demand for this year and 2025, following negative news about China’s economy.
The country’s growth has been falling short of expectations for some time. China is a large consumer of oil – if the country’s economy weakens, demand drops accordingly.
Over the weekend, Beijing announced new measures to revive its struggling economy. Finance Minister Lan Foan promised, among other things, to help local governments deal with their debt, while increasing spending on government bonds and offering new subsidies.
In its monthly report, the Organization of Petroleum Exporting Countries lowered its forecast for global oil demand for the third consecutive month.
Major US banks and the International Energy Agency also expect demand to be significantly lower.