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Crude oil futures fell Tuesday, failing to extend the previous session’s rally, as market participants apparently do not see the war in Israel and Gaza spilling into a wider conflict.
Front-month Nymex crude (CL1:COM) for November delivery settled -0.5% to $85.97/bbl, and December Brent crude (CO1:COM) closed -0.6% to $87.65/bbl, a day after both benchmarks rose more than 4%.
Front-month Nymex natural gas (NG1:COM) edged +0.2% to $3.382/MMBtu, enough for its sixth consecutive daily increase.
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While crude jumped on Monday, prices had dropped sharply the previous week after hitting 2023 highs near $100/bbl for Brent and above $95/bbl for WTI in late September.
While tensions boil in the Middle East, Reuters reported the U.S. may be re-evaluating sanctions on Venezuela that would allow more companies and countries to import crude from the country.
OPEC has raised its demand forecast, projecting 2045 global oil demand at 116M bbl/day, in contrast with estimates from the International Energy Agency, which sees fossil fuel demand peaking this decade.
In its annual World Oil Outlook report published Monday, OPEC said it sees worldwide oil demand rising by more than 16M bbl/day between 2022 and 2045, rising from 99.6M bbl/day a year ago and 6M more than the cartel’s previous projections of 110M bbl/day in 2045.
The IEA had predicted demand for fossil fuels will peak before 2030, moved up from the end of the decade due to a rise in renewable energy technologies and a shift away from coal in major economies such as China.
