Sluggish Global Demand, OPEC Powerless, Oil Prices Fall Again!
World oil prices weakened again in today's trading, Thursday (October 30th), amid market concerns about global oversupply and slowing energy demand. Although OPEC+ has emphasized that production increases will be gradual, bearish sentiment still looms over the market after the latest reports from the International Energy Agency (IEA) and the U.S. Energy Information Administration (EIA) indicated a potential supply surplus until 2026.
According to an S&P Global Commodity Insights report, global crude oil supply is currently estimated to exceed demand by around 1 million barrels per day, while slowing economic growth in China and Europe is weakening fuel consumption. "Current oil market fundamentals do not support significant price increases, as demand continues to lag behind expectations," said FXEmpire energy analyst John Kilduff in a report Tuesday morning, Asia time.
However, several analysts believe oil prices are beginning to show signs of reaching oversold levels, opening the opportunity for a short-term technical correction. Trade data shows Brent crude oil prices trading in the range of US$60–US$65 per barrel, while WTI crude oil remains at around US$58–US$60 per barrel. The nearest resistance is at US$61.75, while strong support is seen around US$55 per barrel.
"Investors remain cautious as they await upcoming US economic data, including PCE inflation and the jobs report, which could impact the global energy demand outlook," Reuters wrote in its latest report.
Overall, the short-term oil price outlook remains neutral to bearish, with market participants focused on the balance between OPEC+ supply and the persistently recovering demand trend.
Source: Newsmaker.id
