Oil Prices Fall Amid Demand Forecast Cuts

Oil prices have recently dropped to near two-week lows, driven by forecasts of reduced demand growth and diminished concerns over supply disruptions from the Middle East. Brent closed at $74.22 and West Texas Intermediate (WTI) at $70.39, with both seeing significant declines. The International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) have downgraded their global oil demand forecasts for 2024, largely due to a slowing Chinese economy. OPEC's forecast for China's oil demand growth has been cut for the third consecutive month. Despite China's stimulatory efforts, its crude imports have been declining, and OPEC+ production cuts remain in place until December. The potential for geopolitical tensions, particularly involving Iran, continues to pose a risk to oil supply but has not significantly boosted prices recently.