Oil prices continue to fall, completing 3 weeks of decline

by times news cr

2023-11-13T05:00:40+00:00

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/ Oil prices continued to fall after 3 weeks of decline, as traders await industry reports to confirm whether the recent decline is exaggerated.

Brent crude fell below $81 per barrel, after losing about 12% over the past three weeks due to growing concerns about global demand and a decline in the war risk premium between Israel and Hamas. WTI crude oil was trading near $77. OPEC will publish its monthly oil market report on Monday, followed this week by the International Energy Agency and two weeks of US inventory data.

“The focus will be on many of the oil market reports released this week… Any signs of market tightness may change sentiment that has been weakened by easing geopolitical tensions,” said Brian Martin and Daniel Haynes, analysts at ANZ Group Holdings. .

Oil rebounded slightly at the end of last week after falling below $80 on Wednesday for the first time since July, with signs of declining consumption in China, the United States and Europe. Supplies from the Middle East, which is the source of about a third of the world’s crude oil, have remained unaffected by the conflict between Israel and Hamas, while shipments from Russia and the United States are increasing.

Over the weekend, Israeli aircraft bombed Hezbollah targets in Lebanon in another sign that a second front in the conflict could be opening. Senior officials in Israel and the United States indicated the intensification of talks on securing the release of hostages held by Hamas.

Meanwhile, Iraqi Oil Minister Hayan Abdul Ghani visits the Kurdistan Region to discuss resuming exports through the Turkish port of Ceyhan. The main pipeline has been halted since last March due to a dispute between Türkiye and Iraq, and it was also damaged by an earthquake.

Spreads indicate a wait-and-see market, with the price of the two nearest WTI contracts converging on Monday. This compares to an upward trend in the market in a so-called backorder state with a difference of $1.34 a month ago.

Bloomberg

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