Horizontal trend in oil

Oil was flat after recovering from a market slide as investors awaited a retaliatory Iranian attack on Israel. Brent crude traded above $76 a barrel after closing slightly higher on Tuesday. U.S. crude is near $73. Traders continue to monitor the Middle East and a possible Iranian attack on Israel in revenge for the assassinations of Hezbollah and Hamas leaders. Oil still faces headwinds from weak demand in China and the U.S. and a potential supply increase from OPEC+ starting next quarter. “Oil market participants are closely monitoring the escalating tensions in the Middle East but are not pricing in any supply risk premium,” said Vandana Hari, founder of Vanda Insights in Singapore. There are also concerns about the demand outlook for next year. The U.S. agency lowered its forecast for crude consumption to 104.5 million barrels a day in 2025 because of a slowdown in China, according to a monthly report released on Tuesday.