Oil prices fall below $74

Brent crude prices eased below $74 a barrel on Tuesday after reports suggested Israel may avoid targeting Iranian oil infrastructure, easing fears of a major supply disruption in the region.

WTI, meanwhile, is trading at $69.70 a barrel.

Israel has indicated it may heed US warnings and focus on military rather than energy targets in Iran, although tensions remain high. The IEA also cut its demand growth forecast, citing near-record spare capacity in OPEC+ and slowing demand in major markets such as China.

Global oil demand is forecast to rise by just under 900,000 bpd in 2024 and 1 million bpd in 2025, slowing from the 2 million bpd growth seen after the pandemic.

China's oil demand is particularly weak, with consumption falling by 500,000 bpd in August for the fourth consecutive month. Meanwhile, crude production in the Americas is expected to rise by 1.5 million bpd this year and next.

OPEC on Monday lowered its global oil demand forecast for 2024 and 2025 for the third consecutive month.