Oil prices declined after a five-day rally, as concerns over escalating tensions in the Middle East were balanced by signs of weakening global demand growth. Brent crude fell below $82 per barrel, and West Texas Intermediate (WTI) hovered around $80, following a nearly 8% increase over the previous five sessions.
The drop in prices comes despite the U.S. warning that an Iranian attack on Israel may be imminent, potentially exacerbating regional instability. However, market sentiment was tempered by OPEC’s recent decision to trim its demand forecasts for 2023 and 2024, reflecting concerns over weaker consumption.
Investors are closely watching for further developments, including the International Energy Agency (IEA) report due later on Tuesday and U.S. inflation data set to be released on Wednesday. These reports are likely to provide further insights into global demand trends and potential impacts on oil prices.
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