Oil prices continue to decline for the fourth week in a row, having already lost about a sixth of its value, due to market fears about global demand.
About this informs Reuters.
It is noted that Brent oil futures are $77.49 per barrel. American West Texas Intermediate (WTI) oil costs $72.96. Both crudes have lost about a sixth of their value over the past four weeks.
“Oil prices have fallen somewhat this year, despite the fact that demand has exceeded our optimistic expectations,” analysts at Goldman Sachs noted.
This week’s drop in oil prices was largely driven by a sharp rise in U.S. crude inventories and production remaining at a record level, which analysts said raised concerns about weak demand in the world’s biggest oil consumer amid high output.
“The recent drop in prices may also force Saudi Arabia to extend an additional voluntary oil production cut of 1 million barrels per day through 2024,” it said.
“It has become clearer that the oil balance by the end of this year is not as tight as originally expected,” ING analysts noted in their report.
The postponement of additional supply cuts from Saudi Arabia to early 2024 should help erase the expected surplus and provide some support to the market, ING said.