Brent crude oil prices in the North Sea reached $98.35 per barrel in trading on Monday (November 18), which is an increase of 3 cents compared to the previous day. Meanwhile, the U.S. benchmark West Texas Intermediate crude was traded at $91.30 per barrel, up 0.5 percent.
Recent Decline in Oil Prices
Brent oil prices fell 16 percent last week, marking the largest weekly drop since the onset of the COVID-19 pandemic. This significant decline in oil prices, along with concerns about supply disruptions and increased production in other countries, has affected the oil market.
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Analysis and Predictions
Suganda Sachdeva, founder of the research firm “SS WealthStreet” in New Delhi, noted that recent optimism regarding potential diplomatic openings exists, but geopolitical risks remain high. She also emphasized that the market seems to have reacted positively to a scenario of reduced tensions.
Donald Trump, the President of the United States, stated on Sunday (November 17) that as long as negotiations to resolve disputes are ongoing, the occurrence of new conflicts seems very unlikely. Trump's remarks are seen as a positive sign for the oil market.
Supply and Demand Situation
At the same time, JPMorgan reported that the oil market is once again heading towards an oversupply situation. This condition has arisen due to the resumption of oil flows from the Middle East, increased production in other countries, and decreased demand. This American bank estimates that the oversupply in September was 1.1 million barrels per day, which will increase to 1.4 million barrels per day in October.
Overall, the oil market is influenced by various factors, including political and economic developments, and price volatility is expected to continue in the coming days.
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