Oil down on Tuesday

Oil prices went down on Tuesday as Israel accepted a US proposal to address disagreements hindering a ceasefire in Gaza, easing concerns over potential disruptions to Middle Eastern supply. Brent crude fell by 0.7 per cent to $77.13 per barrel, while US West Texas Intermediate (WTI) crude dropped to $73.87 per barrel, also down 0.7 per cent.

The declines followed a broader sell-off on Monday, with Brent and WTI falling 2.5 per cent and 3 per cent, respectively.

Market strategist Yeap Jun Rong highlighted that geopolitical developments and concerns over China’s demand weighed on prices. US Secretary of State Antony Blinken confirmed Israel’s acceptance of a “bridging proposal” aimed at facilitating a ceasefire, further calming supply fears.

In addition, production at Libya’s Sharara oilfield increased to 85,000 barrels per day after previous disruptions, reducing supply concerns. However, concerns over China’s economic slowdown continued to pressure oil prices, with weak industrial output and falling home prices suggesting a drop in oil demand. Investors are also closely watching the US Federal Reserve’s upcoming interest rate decision, which could impact demand in the world’s largest oil consumer.

Attribution: Reuters

Subediting: M. S. Salama