U.S. crude oil prices dropped below $75 per barrel on Tuesday, marking their lowest level since early June. This decline was driven primarily by concerns over China’s economic performance, which overshadowed recent escalations in the Middle East.
Tamas Varga, an analyst at oil broker PVM, attributed the decrease to prevailing macroeconomic factors influencing investor sentiment. “The market saw oil prices slide through technical support levels with remarkable ease,” Varga commented. He emphasized that ongoing economic difficulties in China, including sluggish growth and reduced crude oil imports, remain significant drivers of market behavior.
The closing energy prices for Tuesday were as follows:
– West Texas Intermediate (WTI) for the September contract settled at $74.73 per barrel, down $1.08, or 1.42%. Year-to-date, U.S. crude oil has increased by 4.3%.
– Brent crude for the September contract closed at $78.63 per barrel, down $1.15, or 1.44%. This global benchmark has risen by 2% year-to-date.
– RBOB gasoline for the August contract ended at $2.38 per gallon, decreasing by nearly 3 cents, or 1.17%. Year-to-date, gasoline prices have risen by 13.5%.
– Natural gas for the September contract was priced at $2.12 per thousand cubic feet, up 9 cents, or 4.42%. Year-to-date, natural gas prices have declined by 15.4%.
In the Middle East, tensions have intensified between Israel and Hezbollah, an Iran-backed militia, following a rocket attack from Lebanon that resulted in the deaths of 12 children in the Israeli-occupied Golan Heights. In response, the Israeli military conducted an airstrike in southern Beirut targeting a Hezbollah commander they attributed responsibility for the attack. Israeli officials indicated that their objective is to damage Hezbollah’s capabilities while avoiding a full-scale war.
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