International oil prices fell sharply this week as geopolitical risks eased.

London Brent crude futures fell 3.7% in the week, the biggest weekly decline since early August. U.S. crude oil futures fell 3.6% in the week, the biggest weekly decline since mid-July.

The crude oil futures are only slightly higher than the level before Saudi oil facilities were attacked in September 14th. Manish Raj, chief financial officer of Velandera Energy Partners, said the supply-demand balance was having an impact on oil prices as geopolitical concerns gave way to supply and demand realities.

Saudi officials say Saudi oil production has recovered to an average of more than 11 million barrels a day since the attack on the country’s main oil facilities. Raj said Saudi Arabia’s strong commitment to the market and the attack on oil facilities in the middle of this month was a one-off event, which eased market concerns.

Jim Rietbusch, President of Ritter Busch associates, believes that because of the lack of progress in the economic and trade situation and the impeachment survey launched against the US president, investor risk appetite has been reduced. Reverse seasonal increases in U.S. commercial crude oil inventories have increased downward pressure on oil prices.

Tariq Zahir, executive director of dikka capital consultancy, said that if Saudi Arabia’s oil facilities were not attacked, the trading range of oil prices might be lower. If there is no escalation of tension in the Middle East or obstruction of oil supply, the premium in the oil market will gradually disappear. Future demand prospects have become more sluggish.

According to data released by the US oilfield technology service company, the number of active drilling rig in the United States continued to decline during the week, with a decrease of 6 to 713.

According to today’s oil price website September 27th, IEA, executive director of the International Energy Agency (the International Energy Agency), said on Friday that if the global economy deteriorates further, IEA may again reduce its oil demand growth forecast for the next two years.

“It will depend on the global economy,” bill Rohr said at a forum in South Korea. If there are already signs that the global economy is weakening, then we may lower our expectations for oil demand.

IEA and many other organizations and analysts, including OPEC, have lowered their oil demand growth expectations several times this year because of signs of a slowdown in global economic growth.

The IEA’s latest drop in oil demand growth was in its August oil market report, in which it cut its forecast by 100,000 barrels per day to 1.1 million barrels per day between January and May, at a growth rate of only 520,000 barrels per day. This is the lowest increase since 2008. IEA also lowered its forecast for oil demand growth in 2020 by 50,000 barrels per day to 1.3 million barrels per day in August.

In its latest oil market report released in September, the IEA maintained its forecast for August, with oil demand expected to grow by 1.1 million barrels a day this year and 1.3 million barrels a day next year.