China's announcement of new stimulus was not enough to quell concerns about oil demand (Image: REUTERS/Stringer/Archivo)
O oil erased the previous day's gains and closed down more than 2% amid uncertainty about demand, even after the announcement of new stimulus packages from China.
This Tuesday (24), the most liquid contracts of the Brent oila reference for the international market, for December, ended the session down 2.10%, at US$ 72.90 per barrel, on the Intercontinental Exchange (ICE), in London.
The contracts of the West Texas Intermediate oil (WTI) for November fell 2.61%, to US$ 69.69 a barrel, on the New York Mercantile Exchange (Nymex), in the United States.
What moved oil today?
The announcement of new stimulus measures for the economy by the Central Bank of China (PBoC) was not enough to continue the pace of oil gains.
On Wednesday (25), the Chinese Central Bank announced a new reduction in the one-year medium-term lending instrument (MLF) rate for some financial institutions from 2.30% to 2.00%.
However, demand has fallen amid uncertainty and the prospect of increased supply. In Libya, new members of the Central Bank have been appointed and the country's production is expected to resume soon.
In addition, Tropical Storm Helene, which was approaching the Gulf of Mexico region in the United States, changed direction and moved away from oil producing areas.
In the Middle East, tension remains high.
The escalating conflict between Iran-backed Hezbollah in Lebanon and Israel has also supported crude oil prices, with cross-border rocket fire by both sides raising fears of a wider conflict.
Oil market analysts have warned for months that a war between Israel and Hezbollah, which has so far been exchanging rocket fire, could force Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), to intervene directly, increasing the risk of disruptions to crude supplies in the Middle East.
*With information from Reuters