Crude oil futures fell more than 4% on Tuesday, as a looming global oil surplus next year overshadowed the risk of a supply disruption from the conflict between Israel and Iran.
Oil prices spiked earlier this month after Iran hit Israel with a ballistic missile attack, raising fears that Israel would respond by targeting the Islamic Republic's oil facilities.
The International Energy Agency said Tuesday that its members are prepared to take action if there is a supply disruption in the Middle East.
Meanwhile, crude production in the Americas, led by the U.S., is poised to grow by 1.5 million bpd this year and next, the IEA said.
OPEC has cut its oil 2024 forecast for the third consecutive month in a row.
Persons:
Israel
Organizations:
International Energy Agency, OPEC
Locations:
Israel, Iran, Americas, U.S