Oil prices plummeted due to negative news from the United States and reduced tensions in the Middle East, reaching a 9-month low.

Over the past three trading sessions, Brent crude oil futures prices for November have fallen by 6.6%, hitting a nine-month low of $72.7 per barrel. This decline is related to negative macroeconomic news from the USA. Additionally, reduced tensions in the Middle East have diminished speculative influence on prices.

Economic news released yesterday had a negative impact on energy demand and oil prices. For instance, in July, the US JOLTS job openings decreased by 237,000, hitting a three-and-a-half-year low of 7.673 million (compared to an expected 8.1 million). This signals labor market weakness. Furthermore, in August, the S&P business activity index in the Eurozone was revised downwards by 0.2 to 51 points, China's Caixin services PMI dropped by 0.5 to 51.6 points (expected 51.8), and Japan's Jibun Bank services PMI was revised down by 0.3 to 53.7 points. Housing sales in China for the first seven months of 2024 fell by 21%, hitting an 18-year low, while the number of unfinished construction projects increased.

Today, the EIA will release its weekly report showing oil demand and inventories in the USA, which will also impact prices.

Saudi Arabia and Russia (OPEC+ members) intend to persuade other participants to postpone the planned October increase in oil production. This decision comes amidst significant supplies and unstable demand, leading to a sharp price decline.

December soybean oil futures prices in Chicago dropped by 4.4%, reaching $885 per ton (down 1.2% for the week), aligning with the previous month's level. Meanwhile, soy prices are rising due to deteriorating planting conditions in the USA and dry weather in Brazil ahead of seeding.

On the Bursa Malaysia exchange, October palm oil futures prices fell by 2.3% to 3886 ringgit per ton or $879 per ton. This is attributed to declining oil prices and competing oils, as well as reduced palm oil imports to India, which decreased by 27% in August.

According to Vortexa data, crude oil inventories stored on stationary tankers for more than seven days dropped by 14% in a week, reaching 52.99 million barrels, which is a four-and-a-half-year low. This will also influence price growth in the near future.