the sector is in disarray

(Boursier.com) — The oil sector takes a nosedive on the stock market at the opening, like TotalEnergies which fell by 3.8% to 60.1 euros. Maurel&Prom, Vallourec et Esso also fold. It must be said that black gold prices are falling sharply, down for the third consecutive session, while Israel should avoid targeting Iranian crude infrastructures. A barrel of Brent from the North Sea (contract due in December) fell 3.7% to $74.7, while West Texas Intermediate (due in November) rose 3.6% to $71 on the Nymex.

The Jewish state said it was evaluating US warnings against strikes on Iranian energy sites, but would act on its own assessments, after the Washington Post reported that Prime Minister Benjamin Netanyahu told the Biden administration it was prepared to strike military rather than oil or nuclear facilities in Iran. “A reduced Israeli strike against Iran reduces supply risks and therefore the need for a geopolitical risk premium,” Dominic Schnider, head of foreign exchange and commodities at UBS Global Wealth Management, told ‘Bloomberg’ . “It also brings to the surface old concerns about demand.”

Adding to the prevailing gloom, OPEC yesterday revised its forecasts for demand growth, reducing its estimates for this year and 2025 for a third consecutive month. OPEC now estimates that global oil demand will increase by 1.93 million barrels per day in 2024, compared to growth of 2.03 million bpd forecast last month. Forecasters are divided on the strength of oil demand growth in 2024, partly due to differences over China and, more generally, over the pace of the transition to cleaner fuels around the world. While Beijing’s economic stimulus measures are expected to support demand in the fourth quarter, oil consumption in the world’s second-largest economy faces headwinds from economic challenges and the adoption of cleaner fuels, the cartel said .