November 17, 2023 (MLN): Global oil prices edged up on Friday but were on track for a fourth consecutive week of decline driven by concerns over increased supply and weak global demand.
Brent crude is currently trading at $77.48 per barrel, up by 0.05% on the day.
While West Texas Intermediate crude (WTI) is trading at $73.085 per barrel, up by 0.04% on the day.
Both benchmarks plunged over 4% in yesterday’s session as a larger-than-expected rise in U.S. crude inventories in the United States signaled high supply, coupled with worries over global demand.
Moreover, Brent and U.S. crude oil prices are at their lowest level since July this year.
"There was little in the way of fresh fundamental developments behind the move. Instead, a break below US$80/bbl appears to have brought a fair amount of technical selling," ING said in a research note on Friday, as Reuters reported.
OPEC and the International Energy Agency (IEA) have both predicted supply tightness in the fourth quarter, but some key economic data from around the world this week showed demand was bleaker than forecast.
The oil prices' decline this week was mainly triggered by a steep rise in U.S. crude inventories and production sustaining at record levels, which analysts say triggered concerns of weak demand in the world's largest oil consumer amid high output.
JPMorgan Commodities Research said on Friday its global oil demand tracker showed demand averaged 101.6 million barrels a day in the first half of November, running 200,000 barrels a day lower than its projection for the month.
Analysts said that the recent drop in prices is also likely to make Saudi Arabia extend oil output cuts into 2024.
"There will be growing noise around OPEC policy in the coming weeks with the group set to meet in Vienna on 26 November," ING said.
