Oil prices are expected to drop for the fourth week in a row

17 Nov 2023 , 09:35 AM

Following a 5% plunge to a four-month low on Thursday due to concerns over global demand, oil prices were little changed in early Asian trade, setting the stage for a fourth consecutive week of declines.

Brent futures were up 10 cents, or 0.1%, at $77.52 per barrel. At $72.95, U.S. West Texas Intermediate (WTI) crude oil was almost unchanged. Over the past four weeks, both indices have lost around a sixth of their value.

Although the International Energy Agency (IEA) and OPEC have both foreseen supply constraints in the fourth quarter, this week’s major global economic data revealed demand was worse than anticipated.

This week’s sharp increase in U.S. crude stocks and production, which has continued to surge at record levels, are mostly to blame for the drop in oil prices. Analysts say this has raised concerns about poor demand in the world’s top oil consumer despite strong output.

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