By Adedapo Adesanya
Brent crude fell below $80 per barrel, selling at $79.78 per barrel due to a $1.35 or 1.7 per cent loss amid worsening outcomes in the oil market after Israel said it wanted to avoid dragging the Middle East into an all-out war, with the US crude futures went down by $1.35 or 1.8 per cent to trade at $75.81 a barrel.
Reuters on Monday said Israel wanted to hurt the Iranian-backed Lebanese group, Hezbollah, which the country blames for the Saturday attack that killed 12 children and teenagers, without sparking a broader conflict.
Israel’s security council approved Prime Minister Benjamin Netanyahu’s government’s “manner and timing” of a reaction to the assault at a sports field on Sunday. Israel promised reprisals in Lebanon against Hezbollah, which claimed involvement in the strike.
The tensions sparked investor concerns about the potential impact on crude output from the world’s largest oil-producing region, but so far output has not been affected.
Meanwhile, China’s weak outlook continued to depress the market as the world’s largest oil importer faced economic headwinds.
Data published this month revealed that China’s overall fuel imports declined 11 per cent in the first half of 2024, which raises questions about the global demand perspective in the top crude importer of the globe.
News that the 650,000-barrel capacity Dangote oil refinery in Nigeria is reselling cargoes of US and Nigerian crude after technical problems from a defective crude distillation unit (CDU) at the plant, almost dented prices.
The management of the refinery later dismissed the report and said it should be disregarded.
“This is outright falsehood as we are not authorised to sell any crude we buy from Nigeria! Also, our CDU is working and in perfect condition,” it said.
Markets are monitoring developments in Venezuela, a member of the Organisation of the Petroleum Exporting Countries (OPEC), in meantime after the nation’s election administration said that, despite some exit polls pointing to an opposition victory, President Nicolas Maduro had won a third term with 51 per cent of the vote.
The US had earlier said it would “calibrate” its sanctions approach towards Venezuela based on how the election turns out in the oil-producing country.
Goldman Sachs predicted that US crude output would increase by 500,000 barrels per day in the current year, a slower growth clip compared to last year’s increase of more than 1 million barrels per day but still, the US will account for 60 per cent of non-OPEC production growth.
Modupe Gbadeyanka 
Dipo Olowookere