Oil held a sharp drop spurred by signs that the Israel-Hamas war will remain contained while demand may be softening.
West Texas Intermediate was steady above $82, after losing nearly 4% on Monday to erase all of the gains that followed the Oct. 7 attack on Israel. Global benchmark Brent was below $88. The ground invasion of Gaza has yet to spark a wider regional conflict that could risk crude supplies, although Prime Minister Benjamin Netanyahu has ruled out a cease-fire.
Crude is wrapping up a turbulent month, with prices rocked by the war and mixed indicators on demand. Both WTI and Brent are on course to cap declines in October as the risk premium triggered by the conflict fades, with concerns of a global slowdown returning to the fore. Data from Asia highlighted the risks as manufacturing in China fell back into contraction.
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