Brent Crude Falls but Remains Above $80 as Concerns Over the Middle East Ease

The International Energy Agency (IEA) on Tuesday cut its oil demand growth forecast for 2025.

Ignacio Teson•Wednesday, August 14, 2024•1 min read

Oil prices remained stable this Wednesday, as concerns eased slightly over the possibility of an escalating conflict in the Middle East that could threaten production in one of the world’s key oil-producing regions.

Brent crude futures fell 10 cents, or 0.1%, to $80.80 per barrel. U.S. West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.2%, at $78.16 per barrel. After hitting a seven-month low of $76.30 early last week, Brent rebounded by over 3% on Monday, marking a five-day winning streak and closing at $82.30 per barrel.

Iran vowed a harsh response to the assassination of a Hamas leader late last month. Three senior Iranian officials stated that only a ceasefire agreement in Gaza would prevent Iran from directly retaliating against Israel for the killing.

Israel has neither confirmed nor denied involvement but is engaged in conflict with Hamas in Gaza following the group’s attack on Israel in October. To counter Iran, the U.S. Navy has deployed warships and a submarine to the Middle East.

UKOIL

The International Energy Agency (IEA) on Tuesday cut its oil demand growth forecast for 2025, citing the impact of a weakening Chinese economy on consumption.

This followed OPEC’s decision to lower its demand forecast for 2024 for similar reasons.

Signs of stronger demand in the U.S. had supported prices in early trading. The American Petroleum Institute (API) reported a significant drop in U.S. crude inventories by 5.2 million barrels, far exceeding the expected 2-million-barrel decrease. These figures indicated that oil demand remains strong.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.