Meanwhile, Brent crude oil prices fell a third day by 3.8% to $74.52 per barrel, its lowest level since October 2, DBS’ FX analyst Philip Wee notes.

Middle-eastern tensions turning point softens oil prices

“OPEC and the International Energy Agency lowered their forecasts for global oil demand in 2024, citing oversupply amid weak demand from China. Fears of a broader conflict in the Middle East eased after Israeli Prime Minister Benjamin Netanyahu assured US President Joe Biden that it would strike military and not target oil or nuclear sites in Iran.”

“On October 13, US Secretary of State Antony Blinken and Defense Secretary Lloyd Austin sent a signed warning letter to Israel to address, over the next 30 days, the significant drop in humanitarian aid into Gaza or risk a cut in arms sales.”

“Although the deadline comes after the US Presidential Elections on November 5, the new President will only take over the White House in January 2025.”