Oil sinks 5% as price run-up over Middle East conflict takes a pause, China stimulus disappoints

Published On Oct 8, 2024, 11:34 AM

Oil prices have declined over 5% following a five-day winning streak. This drop comes as the rally, fueled by tensions from the Middle East conflict, eases and news surfaces about a lack of substantial new stimulus from China. West Texas Intermediate crude trades below $73 per barrel, while Brent crude drops below $76.50 per barrel. The recent rally followed speculation of potential retaliatory actions by Israel against Iran, which might impact oil infrastructure. However, without additional escalation, analysts predict oil prices may correct downward. The Chinese economy showed no signs of significant new measures, suggesting weakened demand. Hurricane Milton caused Chevron to evacuate personnel from its Gulf of Mexico facility, but this is not expected to impact crude output significantly.