Brent Crude Oil Price Falls Below $70 Per Barrel

The Brent crude oil price fell to a low of $69.91 on Tuesday amid concerns over demand and the potential oversupply. This is the lowest level since Sept. 11, according to Cogencis.

The prices fell 2.59% intraday due to concerns over demand and the potential for oversupply amid ongoing conflicts in the Middle East. In addition, OPEC will meet to assess the global oil market on Oct. 2.

"The upcoming OPEC JMMC meeting tomorrow is also highly anticipated, although Russian Deputy Prime Minister Alexander Novak has stated that the group will start restoring supply in December and is not discussing any new proposals," said Kaynat Chainwala, AVP-Commodity Research, Kotak Securities.

At 3:06 p.m., prices of Brent crude oil pared losses and traded 2.2% lower at $70.11 per barrel.

This comes after Brent crude futures closed 38 cents higher on Monday at $71.89 per barrel amid concerns about supply due to escalating tensions in West Asia. On Sunday, Israel escalated its attacks on Houthi targets in Yemen and conducted airstrikes in Lebanon. This surge in military action came after the recent killing of Hezbollah leader Sayyed Hassan Nasrallah. This has raised concerns about a broader regional conflict involving Iran.

Despite the tensions, the chances of an all-out war between Iran and Israel remain low. President Masoud Pezeshkian did not commit to a direct attack on Israel and maintained a relatively restrained tone in his speech at the United Nations.

"We see this geopolitical escalation, and once again the impact is not being felt, simply because the market is seeing multiple geopolitical come and go since December last year, and every time we face the situation, the market comes to the conclusion that this is not going to have an overall impact on the supply from key producers in the Middle East," said Ole Hansen, head of commodity strategy at Saxo Ban.