Crude oil futures, which have entered a bear market, are on track to decline for the fourth consecutive week. Saudi Arabia and Russia, which lead the OPEC+ group made up of the Organization of the Petroleum Exporting Countries (OPEC) and major non-member oil producing countries, are trying to stem the fall in prices, but signs of healthy supplies and rising inventories indicate Those efforts are being offset.
West Texas Intermediate (WTI) on the New York Mercantile Exchange (NYMEX) is trading at around $73 per barrel, down more than 20% from its September high. Brent plunged nearly 5% on the 16th. This was due to an increase in US crude oil inventories, and is likely to have been amplified by program buying and selling.
Oil prices continue to fall despite supply curbs from OPEC and its allies. A fourth consecutive week of decline would be the longest since May. Concerns that fighting between Israel and Hamas could spark a broader regional conflict and jeopardize supplies from the Middle East have so far not had much impact.
The International Energy Agency (IEA) said on the 14th that the global oil market will not be as tight as expected in the October-December period, as oil supply forecasts have been revised upwards to a greater extent than demand. Pressure is mounting on OPEC+ ahead of its meeting on the 26th.
IEA says October-December oil market will not be as tight as expected due to increased supply
The December WTI contract was up 0.3% at $73.10 per barrel as of 7:45 a.m. Singapore time on the 17th (8:45 a.m. Japan time). The stock ended the 16th at its lowest price since July.
Brent January contract closed 4.6% lower at $77.42 per barrel on the 16th.
Original title: Oil Sinks Into Bear Market as Robust Supply Pressures OPEC+ (excerpt)