Oil prices fell sharply on Tuesday amid easing concerns about an Israeli attack on Iranian facilities and weak demand from China , the Financial Times reported, citing a forecast from the International Energy Agency ( IEA ).
According to the agency, the price of Brent crude oil fell by 5.3% to $73.34 per barrel at the start of trading, and then partially recovered to a level 4.9% lower than the previous one. American WTI fell by 5.6%.
“Chinese oil demand continues to disappoint expectations and is the main factor holding back overall growth,” the IEA experts said.
The agency revised down its forecast for oil demand growth this year by 40,000 barrels a day to 860,000 barrels a day. Growth of about 1 million barrels a day is forecast for 2025.
The IEA also noted that OPEC members have more than 1.2 billion barrels of reserves and sufficient spare capacity to cushion potential supply disruptions.
“For now, supplies are continuing and, barring major disruptions, the market will face a significant surplus in the new year,” the agency stressed.
Last week, an economist described a scenario in which oil prices would jump above $100 a barrel.
Earlier, the US announced the strengthening of oil sanctions against Russia.