Seagrass on the beach frames an offshore gas rig at dusk on May 10, 2024, near Fort Morgan, AL.
J. David Ake | Getty Images
U.S. crude oil futures on Tuesday fell to their lowest levels since early June as worries about China’s economy overshadow a new round of escalation in the Middle East.
“Macroeconomic considerations keep shaping investors’ sentiment and oil slid through technical supports like a hot knife through butter,” Tamas Varga, analyst at oil broker PVM, wrote in a Tuesday note.
“Chinese economic turmoil, including sluggish growth and falling crude oil imports, is still a major driving force for our market,” Varga said.
Here are Tuesday’s closing energy prices:
- West Texas Intermediate September contract: $74.73 per barrel, down $1.08, or 1.42%. Year to date, U.S. crude oil has gained 4.3%.
- Brent September contract: $78.63 per barrel, down $1.15, or 1.44%. Year to date, the global benchmark has climbed 2%.
- RBOB Gasoline August contract: $2.38 per gallon, down nearly 3 cents, or 1.17%. Year to date, gasoline has gained 13.5%.
- Natural Gas September contract: $2.12 per thousand cubic feet, up 9 cents, or 4.42%. Year to date, gas is down 15.4%.
In the Middle East, meanwhile, tensions have escalated between Israel and the Iran-backed militia Hezbollah, after a rocket fired from Lebanon killed 12 children in the Israeli-occupied Golan Heights.
Israel’s military responded on Tuesday with an airstrike in a suburb of southern Beirut, targeting a commander they claim was responsible for the rocket attack.
Israeli officials told Reuters on Monday that Israel wants to hurt Hezbollah, but avoid all-out war.