Oil prices remained steady on October 1, 2024, as concerns over escalating conflicts in the Middle East were countered by weak global demand growth. Brent crude futures for December delivery rose by 0.18% to $71.83 a barrel, while U.S. West Texas Intermediate crude futures for November delivery increased by 0.16% to $68.28 a barrel.
The oil market has faced pressure due to disappointing demand growth, particularly in China, the world's largest crude importer. Recent data indicated a contraction in China's manufacturing activity for the fifth consecutive month in September, reinforcing fears about demand.
Despite these concerns, tensions between Israel and Hezbollah in Lebanon raised the potential for disruptions in oil exports, especially with Iran's involvement. The Israeli military has commenced targeted operations against Hezbollah, further complicating the geopolitical landscape.
Major oil producers are expected to increase output before the year's end, with OPEC+ planning to raise production by 180,000 barrels per day in December. Analysts noted that while the risk of supply disruptions exists, the anticipated production hikes are likely to keep oil prices under pressure.
Source: Reuters, October 1, 2024.