Oct 15, 2024 – Global oil prices fell by more than 4 percent on Tuesday, marking a significant shift after weeks of steady increases. Both major oil exchanges, including those in Texas and London, opened with sharp declines, driven by concerns over global demand and rising geopolitical tensions.
The largest drop was seen in the Texas stock exchange, where the price of crude oil for November contracts dropped from $76 to nearly $70 per barrel in just five days. Over the past 24 hours, the Texas exchange recorded a nearly 4.5 percent drop, underscoring the speed of the market shift.
Meanwhile, Brent crude on the London Stock Exchange also experienced a notable fall, declining by almost 4.25 percent. The price of Brent crude fell from $79 to around $74 per barrel in the past few days. Experts attribute the price decline to OPEC’s revised forecast, which predicts lower global oil demand for both 2024 and 2025.
Additionally, tensions in the Middle East are believed to have further pressured prices. Recent developments, including Tel Aviv’s decision to strike Iranian oil facilities in retaliation for attacks on Israel, have added uncertainty to the market. The ongoing geopolitical issues are contributing to concerns over supply disruptions, though the immediate impact on oil production remains uncertain.
The combination of economic factors and geopolitical risks is reshaping oil markets, creating volatility that analysts will continue to monitor closely.
