Global Oil Prices Remain Silent, What's Behind It?
World oil prices moved steadily at the start of this week. Traders are still monitoring the impact of the United States' actions regarding Greenland. Meanwhile, concerns about a global oversupply remain a major market concern.
West Texas Intermediate (WTI) crude oil is trading around US$59 per barrel. This figure is virtually unchanged from Friday's close. Price movements on Monday tended to be volatile due to the US market holiday.
Meanwhile, Brent prices closed below US$64 per barrel. Market sentiment was shaken after US President Donald Trump pushed for the annexation of Greenland. This move weakened the dollar and sparked fears of a trade war between the US and the European Union.
Pressure on oil prices also comes from the supply side. Signs indicate oil supply is growing faster than demand. Some physical oil prices in the Middle East have even fallen as production increases from the OPEC+ alliance.
The International Energy Agency (IEA) continues to warn of the potential for a large surplus this year. The agency is scheduled to release its latest market report on Wednesday. The market is now awaiting new direction that could determine future price movements. (az)
Source: Newsmaker.id