World Oil Prices Decline Again After Last 8 Days Rally
Kolom Nasional. World crude oil prices slumped slightly on Thursday (1/10), US time. Weakness was triggered by investors who were no longer enthusiastic about the US-China trade talks as the Chinese economic data weakened.
Reported by Reuters on Friday (11/1), the price of Brent crude oil futures fell US $ 0.23 to US $ 61.21 per barrel. At the beginning of the trading session, the Brent price had risen to the level of US $ 61.91 per barrel.
Also weakening the price of US West Texas Intermediate (WTI) crude oil futures was US $ 0.09 to US $ 52.27 per barrel, after briefly touching the level of US $ 52.7 per barrel at the beginning of the trading session.
On Wednesday (1/9), the two global benchmark oil prices jumped 5 percent and made the price increase rally last for 8 days, the longest since July 2017.
Global financial markets have climbed as expectations arise for the US-China to avoid a massive trade war.
Trade talks between the two largest economies in the world have taken place. However, the rise in the global market began to be held back after the two countries issued unclear positive statements, without concrete details.
Previously, US President Donald Trump told the media that the talks between the two countries had achieved great success. However, he did not explain further details.
Meanwhile, disappointing data from China added to concerns about the global economy. China's producer prices in December rose at the slowest pace for more than two years. This creates a risk of deflation.
"Data coming out of China, weak inflation, and the length of meaningless breakthrough US-China talks seen today triggered some profit-taking after going pretty fast yesterday," said Price Futures Group Analyst Phil Flynn in Chicago.
The US stock market, which usually moves in the direction of the oil futures market, is also almost flat after four consecutive days of gains.
Barclays estimates that the average Brent price will remain in the range of US $ 55 to US $ 66 per barrel as stock increases in the next few months. In addition, Barclays also expects the market to return to balanced conditions in the second half of this year.
On the other hand, US investment and financial services bank Morgan Stanley cut its oil price forecast by more than 10 percent. This was triggered by a weakening of economic growth and an increase in oil supply.
Based on US government data, US crude oil production has touched a record 11.7 barrels per day (bpd) since early November 2018. To compensate, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed to cut production starting this January.
However, the agreement was challenged by Iran. Iran, whose exports have fallen due to US sanctions, still has to follow the agreement.
Iranian Oil Minister Bijan Zanganeh said US sanctions against his country were completely illegal. In fact, Zanganeh said he would not obey him.
For the record, US sanctions that suppress Iranian exports came into force since November 2018. However, the US has given the exception of imposing sanctions on a number of Iranian oil importing countries for three months.
Reported by Reuters on Friday (11/1), the price of Brent crude oil futures fell US $ 0.23 to US $ 61.21 per barrel. At the beginning of the trading session, the Brent price had risen to the level of US $ 61.91 per barrel.
Also weakening the price of US West Texas Intermediate (WTI) crude oil futures was US $ 0.09 to US $ 52.27 per barrel, after briefly touching the level of US $ 52.7 per barrel at the beginning of the trading session.
On Wednesday (1/9), the two global benchmark oil prices jumped 5 percent and made the price increase rally last for 8 days, the longest since July 2017.
Global financial markets have climbed as expectations arise for the US-China to avoid a massive trade war.
Trade talks between the two largest economies in the world have taken place. However, the rise in the global market began to be held back after the two countries issued unclear positive statements, without concrete details.
Previously, US President Donald Trump told the media that the talks between the two countries had achieved great success. However, he did not explain further details.
Meanwhile, disappointing data from China added to concerns about the global economy. China's producer prices in December rose at the slowest pace for more than two years. This creates a risk of deflation.
"Data coming out of China, weak inflation, and the length of meaningless breakthrough US-China talks seen today triggered some profit-taking after going pretty fast yesterday," said Price Futures Group Analyst Phil Flynn in Chicago.
The US stock market, which usually moves in the direction of the oil futures market, is also almost flat after four consecutive days of gains.
Barclays estimates that the average Brent price will remain in the range of US $ 55 to US $ 66 per barrel as stock increases in the next few months. In addition, Barclays also expects the market to return to balanced conditions in the second half of this year.
On the other hand, US investment and financial services bank Morgan Stanley cut its oil price forecast by more than 10 percent. This was triggered by a weakening of economic growth and an increase in oil supply.
Based on US government data, US crude oil production has touched a record 11.7 barrels per day (bpd) since early November 2018. To compensate, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed to cut production starting this January.
However, the agreement was challenged by Iran. Iran, whose exports have fallen due to US sanctions, still has to follow the agreement.
Iranian Oil Minister Bijan Zanganeh said US sanctions against his country were completely illegal. In fact, Zanganeh said he would not obey him.
For the record, US sanctions that suppress Iranian exports came into force since November 2018. However, the US has given the exception of imposing sanctions on a number of Iranian oil importing countries for three months.
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