Image Source: Pixabay
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.55 on Tuesday. The WTI price plunges as the limited military operation eased concerns about a potential all-out war in the Middle East.
On Saturday, Israel targeted Iran’s military installations in three provinces in reaction to Tehran launching ballistic missiles at Israel on October 1. However, Israel did not strike Iran’s oil or nuclear facilities in retaliation for Iran’s ballistic missile attack, and Iran’s official media claimed that oil output was normal. This, in turn, undermines the WTI price as a fear of significant disruption in the crude supply fades.
Furthermore, weak demand outlooks and China’s economic slowdown contribute to the WTI’s downside. Data released by China’s National Bureau of Statistics on the weekend showed the country’s industrial profits fell by 27.1% YoY in September, the steepest decline since the pandemic.
A report from the International Energy Agency (IEA) indicated that oil demand is estimated to grow at only half the pace in 2024 and 2025 compared to 2022 and 2023, primarily due to a decline in Chinese demand.
The flash Gross Domestic Product (GDP) data from the United States (US) for the third quarter will be published on Wednesday, which is estimated to expand 3% in Q3. The US Nonfarm Payrolls will be released on Friday. If the data show a stronger-than-expected outcome, this could lift the US Dollar and weigh on the USD-denominated WTI price. More By This Author:EUR/USD Flat Lines Above 1.0800 As Traders Await Fresh Catalysts USD/CHF Drifts Higher Above 0.8650 Amid Bullish USDEUR/USD Extends Downside To Near 1.0850, With All Eyes On ECB Rate Decision
