After soaring at the beginning of the week, world oil prices have continued to fall, with Brent currently around $85 a barrel.
At the end of the trading session on October 11, Brent oil price decreased by 2% to 85.8 USD per barrel. US crude oil price WTI also lost nearly 3%, to 83.4 USD.
This morning, prices continued to fall. Brent is now close to $85. WTI is also down to $82.8 a barrel.
Oil prices fell for a third straight session after surging earlier in the week as conflict in the Middle East raised concerns about disruptions to global supplies. The region is home to some of the world’s largest oil producers.
Brent oil prices skyrocketed in the session of October 9, then continuously decreased. Chart: Bloomberg
On October 9, Brent reached $88.7 per barrel, while WTI reached $86. However, prices fell the following day when Saudi Arabia said it was working with regional and international partners to prevent the conflict from escalating. They affirmed that they would make efforts to stabilize the oil market.
"Both WTI and Brent fell yesterday as concerns about supply disruptions subsided," Tamas Varga, an analyst at PVM, told Reuters.
"The only thing that is clear to energy traders right now is that the road ahead is getting bumpier. US consumption will decline. Germany may be heading for a deep recession," said Edward Moya, market analyst at OANDA.
Russia and Saudi Arabia held a meeting yesterday, during which Russian President Vladimir Putin said the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will continue to coordinate to stabilize the oil market.
In its latest report, the US Energy Information Administration (EIA) forecasts that global oil inventories will fall by 200,000 barrels per day in the second half of this year. The main reason is OPEC+ production cuts.
In the US, the latest figures show that oil inventories rose by 12.9 million barrels in the week ending October 6. Investors are waiting for the minutes of the US Federal Reserve's September meeting to predict the direction of interest rates. Higher interest rates will cool the economy and reduce demand for oil.
Ha Thu (according to Reuters)
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