Oil prices fall on easing Middle East concerns

ISTANBUL

Oil prices slightly decreased on Wednesday with eased concerns in the Middle East and the prospects of weak demand in China, one of the world's major crude consumers.

The international oil benchmark of Brent crude dropped 0.5% to $73.99 per barrel at 11.03 am local time (0803GMT), down from the previous session's close of $74.37.

The US benchmark West Texas Intermediate also declined by 0.4% to $70.06 per barrel, compared to $70.38 at the prior session's close.

On Tuesday, Israeli Prime Minister Benjamin Netanyahu assured the US that his forces will attack Iranian military sites, not the nuclear and oil facilities that President Joe Biden previously warned against striking, according to The Washington Post.

Oil markets are watching for Israel's retaliation over an early-October missile strike by Iran.

Prices fell more than 4% in the prior session as the report eased concerns that the oil supply would be disrupted, resulting in the diminishing geopolitical risk premium.

Oil markets are also grappling with forecasts of increased supply and weak demand forecasts from the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC).

The IEA signaled a supply glut in 2025, while slightly trimming its 2024 demand growth forecast, in a monthly report on Tuesday.

On Monday, OPEC had also cut its demand growth forecast for 2024 and 2025, citing weakness in top importer China.

Demand uncertainties in China, the world's largest crude importer, continue to fuel concerns among market players.