Oil prices remained steady on Tuesday after a dip in the previous session. Economic data from Germany, the wider eurozone, and Britain painted a bearish picture that could impact oil demand. Brent crude futures increased by 0.5 percent to $90.24 a barrel, while U.S. West Texas Intermediate crude futures rose by 0.4 percent to $85.87 a barrel.
Data released on Tuesday showed that business activity in the eurozone took an unexpected turn for the worse, raising concerns about a potential recession in the bloc. Germany, in particular, showed signs of already being in a recession, while businesses in Britain reported a decline in activity this month. These reports further highlight the risk of a recession ahead of the Bank of England’s interest rate decision next week.
Additional business activity data from the United States is expected later today.
The International Energy Agency (IEA) stated that it anticipates fossil fuel demand to reach its peak by 2030 based on current government policies.
On Monday, both oil benchmarks experienced a decrease of over 2 percent due to escalating diplomatic efforts in the Middle East. The conflict between Israel and Hamas, the world’s largest oil-supplying region, has been intensifying. However, on Monday, Hamas announced that it had released two Israeli women.
Norbert Ruecker, an analyst at Julius Baer, suggested that the risk premium associated with oil prices should disappear in the next few weeks. He predicts that prices will continue to decrease into next year.
In the United States, a preliminary Reuters poll conducted on Monday suggested that crude stockpiles were expected to have increased last week. The American Petroleum Institute industry group’s report is set to be released at 2030 GMT on Tuesday, and the Energy Information Administration report will follow on Wednesday at 1430 GMT.
More detail via www.theepochtimes.com here… ( Image via www.theepochtimes.com )