The prices of crude oil fell marginally on Wednesday over less oil demand growth and reduced concerns that Middle East conflicts will disrupt supply.
Investors King reports that Brent crude fell 3 cents to trade at $74.22 a barrel while the US West Texas Intermediate (WTI) crude fell 19 cents or 0.3 percent to trade at $70.39.
Prices had fallen at the beginning of the week in response to a weaker demand outlook and a report that Israel would not strike Iranian nuclear and oil sites.
The news has eased fears of supply disruptions in Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC) which produces about 4.0 million barrels per day (bpd) of oil in 2023.
Iran was on track to export around 1.5 million bpd in 2024, up from an estimated 1.4 million bpd in 2023.
A disruption could send prices higher but after intervention from the US President Joe Biden, Israel may not consider the approach anymore.
Support also came from the US and Europe, but could not sway the market in its favour.
Data out of Europe showed that there were signs of positive growth that could see the European Central Bank (ECB) ease interest rates, even if the numbers were not as strong as analysts expected.
Lower interest rates make it possible for demand to improve.
Meanwhile, in the US, import data showed that prices fell by the most in nine months as of September, a sign that the US Federal Reserve may keep cutting interest rates.
OPEC and the International Energy Agency (IEA) this week cut their 2024 global oil demand growth forecasts, with China accounting for the considerable part of the downgrades.
The IEA forecast global oil demand would peak before 2030 at less than 102 million bpd and then fall to 99 million bpd by 2035.
For China, the market wasn’t too optimistic after the government announced billions of bonds to support the country’s economy.
