In early trading on Tuesday, oil witnessed a slight rise in its prices, but it recorded a loss of 17% in the third quarter of the year after concerns about the decline in global demand overshadowed fears of the impact of the expanding conflict in the Middle East on the flow of crude supplies.
Brent crude futures for delivery next December increased 13 cents to $71.83 per barrel. US West Texas Intermediate crude futures for delivery next November rose 11 cents to $68.28 per barrel.
Brent crude, the global measurement, recorded a 9% decline last September, which is its largest monthly decline since November 2022. After falling for the third month in a row, it fell 17% in the third quarter in the world, which is its largest quarterly loss in the world. general.
The US benchmark crude fell 7% last September, its largest monthly decline since October 2023, and fell 16% quarterly in its largest quarterly decline since the third quarter of 2023.
to support
Crude prices received support from the possibility of Iran, a major producer and member of the Organization of the Petroleum Exporting Countries (OPEC), being drawn directly into a widening conflict in the Middle East.
Since last week, Israel has escalated its attacks and launched strikes that killed leaders from Hezbollah and the Palestinian Islamic Resistance Movement (Hamas), and struck Houthi targets in Yemen.
Tim Snyder, an economist at Matador Economics, said that the market is studying whether the conflict in the Middle East will expand in the region.
Chinese stimulus
Prices were not greatly affected by Beijing’s announcement last week of stimulus measures in the world’s second largest economy and its largest oil importer.
Traders are skeptical about the adequacy of these measures to boost Chinese demand, which has been weaker than expected since the beginning of the year.
There are concerns about the rise in global crude supplies that affected prices during the month.
Prices fell last week due to a report that Saudi Arabia was preparing to abandon its unofficial price target of $100 per barrel as it prepared to increase production.
The prospects for a recovery in Libyan oil production also affected the market after resolving the Libyan Central Bank crisis.
Yesterday, Monday, the Libyan House of Representatives, located in the east of the country, approved the appointment of Naji Muhammad Issa Belkacem as the new governor of the Central Bank of Libya as part of efforts to end the crisis that led to a decline in the country’s oil production.
On the other hand, the Russian Information Agency quoted Deputy Prime Minister Alexander Novak yesterday as saying that the tension in the Middle East will not cause major fluctuations in global oil prices because the market has already absorbed the effects of these risks.
