Oil prices rose slightly in Asian trade on Wednesday, steady after posting bruising losses last week as less severe increases in the Middle East and weaker demand weighed. Oil prices fell more than 4% after Israel said in a statement it would not attack Iran’s oil and nuclear facilities. Brent oil futures for December were up 0.4% at $74.55 a barrel, while West Texas Intermediate crude futures were up 0.4% at $70.31.
Fears of an all-out war in the region were a major boost to oil prices as traders priced in a higher risk premium due to supply disruptions in the Middle East. The International Energy Agency said in a monthly report on Tuesday that oil markets expect supply to swell in 2025 and are poised to absorb any potential supply disruptions from the Middle East.
The cut came a day after the Organization of the Petroleum Exporting Countries cut its demand growth forecasts for 2024 and 2025, citing worsening Chinese demand.
