Oil Holds at Lows, Why Hasn't It Fallen Again?
Oil prices remain stable near their lowest level in almost two months, as the market is more concerned about oversupply than the impact of geopolitical tensions. Brent held around US$61/barrel after closing at its lowest level since October 20, while WTI remains below US$58/barrel.
The main pressure comes from expectations of a widening supply surplus: OPEC+ and other producers continue to pump more oil, while consumption growth is expected to remain sluggish. This situation means oil prices are expected to remain on a downward path for the year.
However, geopolitics is also preventing further falls through the "risk premium." Ukraine has again attacked Russian energy infrastructure, Iran claims to have seized a foreign tanker in the Gulf of Oman, and the US has also intercepted ships off the coast of Venezuela as pressure on the Maduro regime increases. With the Christmas and New Year holidays approaching, trading activity is expected to be thinner, making price movements more volatile. (az)
Source: Newsmaker.id
