Brent Crude Drops Below $80 amid Growing Concerns about Demand

The price of oil dipped below $80 per barrel, marking the first occurrence in over three months. This decline is attributed to a diminishing outlook for fuel demand, overshadowing concerns about potential supply disruptions stemming from the crisis in the Middle East.

Brent crude futures, the global benchmark, reached their lowest intraday level since July. Following a surge above $90 after the Oct. 7 attack by Hamas on Israel, the commodity has experienced a significant downturn in the past three weeks, driven by various concerns.

Despite the Middle East conflict not impacting Persian Gulf supplies thus far, attention has shifted to a worsening macroeconomic environment and weakening fundamentals in the oil market. Signs of softened demand in the US and Europe, inconsistent Chinese consumption, and lingering doubts about whether central banks have concluded interest rate hikes contribute to the downward trend.