During today’s trade, Friday, November 10 (2023), oil prices rallied as they continued to reap gains for the second straight session in an attempt to recoup the losses they suffered earlier this week.
Oil markets edged lower for a third straight week as fears of supply disruptions due to the Gaza war eased and demand concerns allowed themselves to reassert themselves.
Oil prices ended their trade yesterday, Thursday, November 9, with an increase of about 1% over the losses they suffered during the previous two sessions.
Oil price today
By 07:41 GMT (Makkah time 09:41 AM), Brent crude futures – for January 2024 delivery – were up 0.50% at $80.41 a barrel.
At the same time, US West Texas Intermediate crude futures – for December 2023 delivery – rose 0.42% to $76.06 a barrel, according to figures seen by the specialist energy site.
Oil prices fell to their lowest level in 4 months this week, driven by supply factors rather than demand factors, with prices expected to remain volatile in the short term.
Brent crude futures are down 5.7% this week, while WTI is down 5.9% from last week.
After a 4-week decline from mid-April to early May, the three-week declines were the longest weekly losses for both contracts.
Oil price analysis
“The risk of supply disruptions from the Middle East continues to diminish,” research firm ANZ said in a note on Friday.
He added: “Clashes within Gaza remain under control, despite fears that the conflict could escalate as neighboring Arab countries express their displeasure,” the agency said. Reuters.
The White House said on Thursday that Israel had agreed to a four-hour-a-day halt to military operations in parts of northern Gaza, although there was no sign of a complete halt.
Analysts believe that a sense of supply disruptions has begun to ease as a result of Israel’s continued targeting of civilians in the Gaza Strip, particularly as worries about demand from China, the world’s biggest oil importer, grow.
Oil is required
Weak Chinese economic data this week has fueled concerns about slowing demand, and refiners in China, which buy most of their crude from Saudi Arabia, the world’s biggest exporter, have ordered less supplies from Saudi Arabia for December.
However, analysts at Citi said in a note on Thursday that they expect downward pressure on oil prices to ease after falling to their lowest level since July earlier this week.
Citibank said: “We expect oil prices to consolidate and we maintain our near-term price expectations with support likely to come from easing refinery maintenance and a shift in risk reward for investors after the recent sell-off.”
They pointed out that upside risks are higher than current levels and that the Organization of the Petroleum Exporting Countries (OPEC) and its allies are likely to try to protect prices, while supply risks in the Middle East remain high.
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