Global Oil Stuck Due to This!
Oil prices are heading for a third consecutive week of decline as the market is clouded by strong signals of a supply glut. The International Energy Agency (IEA) has again raised its surplus projection and even predicted a record oversupply next year. WTI briefly edged up to around USD 59.08 per barrel, while Brent held near USD 63.01 per barrel, but on a weekly basis, WTI is still down more than 1%.
The main pressure comes from a combination of rising production and sluggish demand. OPEC+ continues to revive previously shut production capacity, and the day before, the producer group stated that global oil production in the third quarter exceeded demand, reversing previous estimates that still saw a supply shortage.
From the United States, bearish signals are growing stronger after crude oil stocks rose sharply, hitting their highest level since June. The WTI price structure also briefly entered a contango phase, where the nearest-month contract trades cheaper than the next, a sign of abundant short-term supply. Trendwise, US oil prices have fallen in six of the past seven weeks, while countries outside OPEC have also increased production.
However, several risk factors could mitigate downward pressure on prices. The market is still monitoring US sanctions against Russian energy giants like Rosneft and Lukoil, with Lukoil's trading arm beginning to cut staff and rumors surfacing that the Carlyle Group is considering its overseas assets. Meanwhile, tensions in Venezuela are escalating, driven by the movement of a US aircraft carrier group and rumors that the White House is reviewing options for operations in the country. While WTI and Brent prices may edge higher, the underlying sentiment remains dominated by concerns about a global supply surplus. (asd)
Source: Newsmaker.id
