### Oil Prices Fall 2% Amid Disappointing Chinese Stimulus and OPEC Demand Revisions

Oil prices saw a significant drop of 2% on Monday after China's recent plans for economic stimulus left traders unimpressed and the Organization of the Petroleum Exporting Countries (OPEC) revised its oil demand forecasts downward. West Texas Intermediate (WTI) settled at $73.83 per barrel, while Brent, the international benchmark, closed at $77.46 per barrel.

The decline in prices followed comments from China's Finance Minister over the weekend. Market observers had anticipated detailed plans and substantial figures as signals of increased crude demand from China, the world's largest oil importer. However, the lack of specific details, including the scale of the anticipated stimulus, failed to reassure traders.

Adding to the downward pressure on oil prices was the latest demand forecast from OPEC. In its recently released monthly report, the oil alliance cut its global oil demand growth projection for the third consecutive month. OPEC now predicts a growth of 1.9 million barrels per day for this year, down from its previous forecast of 2 million barrels per day. For 2025, the group has adjusted its demand growth estimate to 1.6 million barrels per day, slightly lower than the earlier forecast of 1.7 million barrels.

Despite the recent dip, crude futures have seen an 8% increase this month. This rise was fueled by market speculation about potential disruptions to Iran's oil production amidst rising tensions in the Middle East. Concerns over possible interruptions to Iran's output of 3 million barrels per day and the impact on shipments through the Strait of Hormuz—a vital chokepoint for crude oil in the region—have been factored into the market.

Earlier in the month, Brent crude prices surged above $80 per barrel, marking the highest level since August. This spike was driven by fears of an Israeli retaliatory strike against Iran following a missile attack by Tehran. However, prices have since retreated as the United States expressed reluctance to support such an attack on Iranian oil facilities.