Oil prices were lower today with worries about global demand offsetting price support from Middle East tensions. China announced its biggest ever reduction in the benchmark mortgage rate, the largest since the reference rate was introduced in 2019 and far more than analysts had expected. “The fact that the crude market hasn’t responded more positively shows you the depths of the oil demand problems in China,” said John Kilduff, partner at Again Capital LLC in New York. The premium for prompt U.S. crude futures to the second-month contract more than doubled, hitting a high of $1.71 a barrel – its widest in roughly four months. This encourages energy companies to sell now rather than paying to store product for future months. The six-month spread for Brent on Tuesday was at its highest since October, a sign of a tighter market. WTI traded down $1.01 or -1.3% to close at $78.18. Brent traded down $1.22 or 1.5% to close at $82.34.