Oil Prices Remain Stable. Oil prices stabilized after a short-term rally as the market digested differences in views on the supply and demand outlook between IEA and OPEC data. Industry reports also show an increase in stocks in the United States (US).
The price of West Texas Intermediate (WTI) oil for the December 2023 contract rose 0.49% or 0.38 points to US$78.64 per barrel at 14.01 WIB. Then, the price of Brent oil for the January 2024 contract also rose 0.53% or 0.44 points to US$82.91 per barrel.
WTI crude oil is trading above US$78 a barrel and Brent is trading near US$83 a barrel. The International Energy Agency (IEA) said that the global oil market would not be as tight as expected this quarter, due to production growth in the US and Brazil that exceeded estimates.
Meanwhile, this happened after an assessment from OPEC which highlighted strong growth and healthy fundamentals. Commonwealth Bank of Australia analyst Vivek Dhar said that the differing views of the two bodies might keep the oil market on edge.
In the third quarter of 2023, Brent crude oil prices averaged US$85 per barrel, and then decreased to US$75 in the second quarter of 2024 due to concerns about demand, although OPEC+ supply policy will be key.
Oil has fallen sharply since mid-October 2023 as the risk premium for an Israel-Hamas war disappeared, and doubts emerged about the demand outlook, before rising in the three days to Monday (13/11).
Oil Prices Remain Stable. Since then, oil has had no clear direction, with concerns about the health of the global economy balanced against indicators that still show the market is in deficit.