HOUSTON: Oil prices fell more $2 a barrel on Thursday as fears of a wider Middle East conflict eased at the same time that US demand showed signs of weakening.
Brent crude futures were down $2.28, or 2.53 per cent, at $87.85 a barrel by 12:40pm CDT (1740 GMT), having settled nearly 2pc higher on Wednesday. US West Texas Intermediate crude futures slid by $2.10, or 2.41pc, to $83.29 a barrel.
Fears of a spillover affecting global crude supplies from the conflict between Israel and Hamas, which could embroil Iran and its allies in the region, have supported oil prices in recent weeks.
Those worries were retreating by midday on Thursday.
“The security premium we’ve been paying since earlier in the month seems to be deflating,” said John Kilduff, partner with Again Capital LLC.
The US and other countries are urging Israel to delay a full invasion of Gaza, which is reeling from almost three weeks of Israeli bombing.
“The market is on edge,” said Price Futures analyst Phil Flynn.
“It’s critical to understand that we’re one headline away from a big rally in the market.”
Worries about the broader global economy also weighed on prices. US Treasury yields headed back towards five per cent on Thursday, dragging shares around the world to multi-month lows.
Published in Dawn, October 27th, 2023
