Brent stabilizes at USD74 area after contraction

Brent crude prices settled near a two-week low of USD74.00 per barrel on Wednesday, after falling 4.1% in the previous session on continued uncertainty over the Middle East conflict.

Brent stabilizes at USD74 area after contraction

WTI is trading at USD70.40 per barrel.

The earlier decline followed reports that Israel would not target Iranian nuclear or oil sites, easing concerns about supply disruption. However, tensions remain high due to the ongoing conflict between Israel and the Hezbollah group, with the US expressing concern over Israel's recent air strikes in Beirut.

OPEC and IEA Lower 2024 Oil Demand Forecasts Amid Weaker Chinese Demand; US Crude Stocks Expected to Rise

On the demand front, both OPEC and the International Energy Agency have cut their global oil demand forecasts for 2024, mainly due to weaker demand from China.

Markets are also awaiting data on US crude inventories, expected to rise to 1.8 million barrels.