Oil Retreats from 7-Week High
Oil prices weakened in Asian trading on Thursday, after briefly hitting a seven-week high the day before. Investors took profits amid lingering uncertainty regarding the global demand and supply outlook. Brent fell 0.4% to $69.05 per barrel, and WTI weakened 0.4% to $64.72 per barrel.
The previous day, both benchmarks surged 2.5% due to a surprise drop in US oil inventories and concerns that a Ukrainian attack on Russian energy infrastructure could disrupt supply. However, analysts believe the increase was driven more by short-term sentiment than fundamental factors.
According to Priyanka Sachdeva of Phillip Nova, oil prices are starting to hit a ceiling due to weakening seasonal demand and the potential for OPEC+ supply increases in the fourth quarter. The return of oil exports from Iraqi Kurdistan also adds to the narrative of a potential oversupply, triggering a price correction.
However, some analysts emphasize that there has been no significant pressure from fundamentals recently. A JP Morgan report noted that US gasoline demand is starting to slow, in line with moderate travel trends. This has made the market more cautious, keeping oil prices vulnerable to a correction in the near term.
Key Points:
Brent $69.05 & WTI $64.72, down 0.4% in Asian trading.
Wednesday's 2.5% surge was triggered by falling US stockpiles and Russian supply risks.
Corrective pressure from weakening seasonal demand and the return of Kurdistan exports.
Fundamentals remain neutral, but US gasoline demand is slowing, making the market cautious. (ayu)
Source: Newsmaker.id
