Oil prices continued their downward trend, influenced by economic data from the United States and Europe.
The upcoming U.S.
elections and ongoing conflicts in the Middle East remain significant factors to watch.On Thursday, October 24, oil closed lower once again.
The Brent crude contracts for December fell by 0.77%, settling at $74.38 per barrel on the Intercontinental Exchange in London.Similarly, West Texas Intermediate (WTI) contracts for December dropped by 0.81%, ending at $70.19 per barrel on the New York Mercantile Exchange.
At one point during the session, WTI traded below $69 per barrel.The decline in oil prices stemmed from increasing market risk aversion.
In Europe, business activity in the eurozone stagnated this month, remaining in contraction territory.The preliminary Composite Purchasing Managers Index (PMI) compiled by S-P Global rose slightly to 49.7 in October, up from 49.6 in September.
Analysts had anticipated a more substantial increase to 49.8.Oil Prices Decline Amid U.S.
Elections and Middle East Concerns.
(Photo Internet reproduction)Despite this monthly improvement, the index stayed below the critical mark of 50, indicating a contraction in industrial activity for the second consecutive month.
The slower economic growth in Europe heightened concerns regarding energy demand.Oil also served as a risk thermometer, reflecting rising investor caution amid speculation about a potential victory for Donald Trump in the upcoming presidential election.Additionally, worries about possible disruptions to oil supply due to Middle Eastern conflicts lingered.
Analysts at Julius Baer noted that despite these uncertainties, oil prices have remained relatively stable in recent days.They highlighted that market anxiety surrounding a direct confrontation between Israel and Iran is palpable, yet long-term outlooks appear more tempered.In short, the bank has adjusted its forecasts and now predicts oil prices will reach $65 per barrel by the end of 2025.