(Bloomberg) — Oil fell for the fourth time in five sessions as traders tracked geopolitical tensions in the Middle East alongside the outlook for the world’s two largest economies.
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Brent slid toward $79 a barrel, while West Texas Intermediate was near $76.
With prices drifting in summer trading, there have been signs of softness in China, the biggest oil importer. Economic growth there has slowed, and the decarbonization of the transportation sector has eroded some fuel demand.
Meanwhile, traders are awaiting a retaliatory Iranian attack on Israel, with war continuing in the Middle East. Ceasefire efforts are being hampered by fresh disagreements between Israel and Hamas.
Traders are now looking for clues about the strategy of OPEC+, with member countries due to begin adding supplies in the next quarter.
“In the medium term, slowing economic activity, weakness in Asia, and softer refinery margins all don’t bode well for crude prices going into year-end,” RBC analysts including Brian Leisen and Helima Croft said in a note. “That said, directional conviction, in the near term, for crude at $80/bbl is low.”
Elsewhere, production at Libya’s Waha oil field has returned to normal levels of about 300,000 barrels a day after pipeline maintenance was completed earlier than expected, according to people with knowledge of the situation. The nation’s Sharara field, however, remains offline and its central bank has been pulled into a dispute between the OPEC nation’s rival governments.
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