Oil prices ease after 5-day rally as OPEC lowers demand growth forecast

Amid geopolitical tensions in the Middle East, crude oil prices have remained relatively elevated in 2024

Oil prices edged lower on August 13, breaking a five-day streak of gains after the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for demand growth in 2024 in the face of softer expectations in China.

Brent had gained over 3 percent on Monday, while US crude futures was up over 4 percent, news agency Reuters reported.

OPEC's lower global demand forecast highlighted the dilemma faced by the wider OPEC+ group in raising production from October.

Global benchmark Brent crude futures dipped 41 cents, or 0.5 percent, lower to $81.89 a barrel at 0005 GMT. US West Texas Intermediate crude futures fell to $79.63 a barrel, down 43 cents, or 0.5 percent.

Middle East tension are escalating, with US preparing for what could be significant attacks by Iran or its proxies in the region as soon as this week, the report added, citing White House national security spokesperson John Kirby.

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As per analysts, any attack could tighten access to global crude supplies. It can also lead US placing embargoes on Iranian crude exports, potentially affecting 1.5 million barrels per day.

Amid geopolitical tensions in the Middle East, crude oil prices have remained relatively elevated in 2024, even reaching $90 a barrel in April when Iran attacked Israel. Since then, crude has been trading at $82- $85 per barrel due to weak demand.

With Reuters inputs