Oil Stuck, Apparently Because of This!
Global oil prices stabilized after rising for three consecutive days, with Brent hovering around $65 per barrel and West Texas Intermediate (WTI) below $61. Traders await the latest report from OPEC, which will provide an overview of the global oil market balance through 2026. Meanwhile, the International Energy Agency (IEA) stated that short-term oil supplies are quite secure, although global demand growth is unlikely to surge anytime soon.
Despite stability, the oil market faces pressure from a growing surplus. Returning to normal OPEC+ production and increased output from other countries have created an abundant supply. Several indicators, such as the price gap between the next-month WTI contract and the next, point to loose market conditions. This suggests that while oil prices could rise in the short term, the market is structurally oversupplied.
However, there are factors that could support oil prices to remain high for a while. US sanctions against Russian energy companies, including Lukoil and Rosneft, have forced European and Middle Eastern countries to ensure Lukoil's operations continue. These efforts have boosted diesel prices and created short-term supply, keeping traders vigilant for potential sudden price fluctuations. (asd)
Source: Newsmaker.id
