Oil Prices Drop Amid Demand Challenges
Oil prices continue their decline after a three-week period of downturn,
with traders awaiting industry reports to confirm the justification for this recent fall.
Brent crude prices witnessed a decrease to below $81 per barrel,
marking a roughly 12% decline over the past three weeks,
driven by growing concerns about global demand and a reduction in tensions surrounding the Middle East conflict. Meanwhile, West Texas Intermediate (WTI) crude traded near $77 per barrel.
Topic
the details
Oil markets
the details
The Organization of the Petroleum Exporting Countries (OPEC) is set to release its monthly oil market report on Monday, followed by reports from the International Energy Agency and U.S. inventory data for the past two weeks.
Analysts suggest that the focus will be on these reports to provide signals about market tightness, which could impact sentiments that have been negatively affected by the decrease in geopolitical tensions.
Oil markets
Oil markets experienced a slight recovery at the end of last week after dropping below
$80 per barrel for the first time since July,
as signs of declining consumption in China, the United States, and Europe emerged.
Meanwhile, oil supplies from the Middle East, representing about a third of global crude oil production,
continued to trade without significant impact from the conflict,
while shipments from Russia and the United States increased.
the Iraqi Oil Minister, Hayan Abdul Ghani, visited the Kurdistan region to discuss the resumption of oil exports through the Turkish port of Ceyhan.
The main pipeline had been halted since March due to a dispute between Turkey and Iraq,
and it suffered damages from an earthquake.
Price differentials indicate market expectations and anticipation,
with the narrowing of the price spread between the nearest two contracts for West Texas Intermediate observed on Monday, contrasting with the upward trend witnessed a month ago with a margin of $1.34.
Oil Prices Drop Amid Demand Challenges