George Glover
Oil prices were plunging Tuesday on media reports saying that Israel will not strike Iran’s nuclear or oil facilities in retaliation for an earlier missile attack. The reports from multiple outlets cite anonymous Israeli government officials.
Brent international crude prices dropped 4.4% to $74.09 a barrel, while West Texas Intermediate U.S. crude fell 4.5% to $70.48.
Iran is one of the world’s top crude producers. The news is likely to soothe fears of an escalation between the two countries that could disrupt global supply.
China is also weighing on oil prices. On Monday, the OPEC cartel of oil producers trimmed its forecast for Chinese consumption in 2024 and 2025 as it cut its overall demand-growth outlook. On Tuesday, the International Energy Agency also warned of a “sharp slowdown” in oil demand growth, citing Chinese weakness. The Asian nation will account for just 20% of global crude gains in 2024 and 2025, per the IEA’s forecast, compared with nearly 70% last year. Beijing has struggled to jump-start the world’s second-largest economy.
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