Knock! OPEC Report Results Panic in Market
Oil prices plummeted after the latest OPEC report predicted that global oil supply would balance demand by 2026. This projection reversed the previous outlook, which predicted a supply deficit, which typically drives prices up. Following this announcement, Brent prices fell more than 3%, while WTI fell around 4%.
Rising supplies, including from OPEC+ member countries and non-OPEC producers, raised market concerns that excess supply would weigh on oil prices. With this surplus projection, market sentiment became more pessimistic, and hopes for significant price increases began to fade. This caused Brent prices to plummet to around $62.70 per barrel, while WTI plunged to $58.50 per barrel.
Despite the expected increase in demand, the market is now more focused on the extent of the impact of the production increase and the potential for a stronger US dollar to dampen demand. A stronger US dollar makes oil more expensive for buyers using other currencies, adding to pressure on global demand.
Going forward, if the supply projection remains balanced, oil prices are expected to move more slowly and may remain depressed. Investors will focus on upcoming economic data to gauge the impact on demand, which could signal a rebound in oil prices. However, the effects of oversupply and global economic uncertainty will remain key factors driving oil price volatility. (asd)
Source: Newsmaker.id
