New collapse in oil prices. Yesterday, fears triggered by the drop in crude oil prices pushed down question from China: For the fifth consecutive month, Beijing has reduced oil imports.
A factor that is increasing fears of weakening demand after that too OPEC has cut its forecasts on oil demand for the third consecutive month, as it did the International Energy Agency.
In the meantime, the alarm also fades of possible attacks on Iranian oil tanker infrastructurewhich had caused the prices of black gold to rise in the last period.
Decreasing demand
The IEA today revised its estimates for 2024 downwards indicating that global oil demand is on track to expand by just under 900 thousand barrels per day (kb/d) in 2024 (third monthly forecast cut) and by almost 1 million barrels per day (mb/d) in 2025, marking a sharp slowdown compared to the approximately 2 mb/d recorded in the post-pandemic period 2022-2023.
Yesterday, too OPEC had revised downwards global oil demand growth forecast for this year, adjusting them by 106 thousand barrels per day at 1.9 MBG. A value which is still higher than the historical average of 1.4 MBG before the pandemic. The adjustment – we read in the cartel’s latest monthly report – reflects the data received and the slightly lower expectations of the regions.
Tensions in the Middle East
Concerns that add up to tensions in the Middle Eastonly partly appeased by a Washington Post report that has excluding the possibility that Israel attacks on oil plants and Iranian nuclear weapons, and which have also pushed the price of oil down today. In response to the Washington Post’s leaks, Netanyahu’s office stated that the decision on retaliation plans against Iran for the October 1 missile attack will be made “based on Israel’s needs.”
The market response
The Brent is priced at around 73.7 dollars per barrel while the WTI even reached 70.11 dollars (-5.03%). On the market they pay all the bonds related to the sector Oil&Gas. In Italy, the worst performers in Piazza Affari are Eni (almost -3%), Saipem and Tenaris. BP and Shell also performed badly in London and Total Energies in Paris.
