Oil prices are falling more than 1% on Thursday (15), as crude flows through the Strait of Hormuz continue to approach pre-war levels and the International Energy Agency (IEA) projects a steeper decline in global consumption than previously anticipated.

North Sea Brent — the European benchmark crude — is down 1.55% to $104.42 a barrel, while West Texas Intermediate (WTI), the US benchmark, is shedding 1.03% to $94.11. Amsterdam-traded natural gas is also retreating, falling 1.82% to €85.56 per megawatt-hour.

On Wednesday, the IEA revised down its global crude consumption forecast, now projecting a drop of 2.6 million barrels per day this year compared with 2025 — 100,000 barrels per day below its estimate from roughly a month ago. A recovery in demand is not expected until March of next year.

Meanwhile, attacks continue in the Middle East, though energy infrastructure has so far been spared from the offensives. Iran-backed Houthi rebels launched fresh missile and drone strikes against Saudi Arabia, keeping geopolitical tensions elevated and limiting further downside in crude prices.

“The Houthi attacks have not caused the severe supply disruptions that the market feared, which has led to a reduction in the geopolitical risk premium,” Takahiro Asaoka, senior economist at the Itochu Research Institute, told Bloomberg. He added that the IEA’s weaker demand outlook has also contributed to downward pressure on prices.

In an effort to reduce global freight rates, the United States is reportedly considering easing sanctions on vessels belonging to the so-called ‘ghost fleet’ that carries oil and refined products from Russia, Iran, and Venezuela, according to international media reports citing Reuters.

Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=552629