World News
Oil Declines For Four Straight Months As Traders Succumb To Bearish Signals
With Brent on Friday settling down 14 cents to $63.20 per barrel and West Texas Intermediate dipping 10 cents to $58.55 per barrel, the numbers contributed to both contracts declining for the fourth straight month, the longest period of decline since 2023.
The daily losses were attributed to impatience over what was perceived to be a drawn-out process for both Russia and Ukraine to formalize a peace deal proposed by Washington.
"It may take some time for a potential Ukraine-Russia peace deal to go through as Russia may look to store up some barrels instead of rushing to sell them," said Mukesh Sahdev, founder and chief executive officer of XAnalysts Pty.
Trading was also said to be motivated by Sunday's meeting of the Organization of the Petroleum Exporting Countries (OPEC), which insiders claim is likely to leave oil output levels unchanged and perhaps impose a mechanism that would assess maximum output caps.
As for oil's multi-month losing streak, it was propelled mainly by the perception that global demand was weakening and oversupply was building, although numerous analysts over the weeks have challenged that view.
The International Energy Agency predicts that global oil supply will outpace demand by 4 million barrels per day (bpd) next year, but Andrew Meleney, portfolio manager at Infrastructure Capital Advisors, pointed out that "The most under appreciated concept is elasticity of demand for oil: when lower prices get passed along, we do see more consumption."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 437.50 | 0.00 | 672.00 | 4.00 |
| Rotterdam | 407.00 | 3.50 | 660.50 | 2.50 |
| Houston | 431.50 | 1.00 | 676.00 | 3.50 |
| Fujairah | 431.50 | 1.50 | 714.50 | 1.50 |
| Global 20 Ports Average | 472.00 | 0.50 | 756.00 | 0.50 |
| Global 4 Ports Average | 427.00 | 0.50 | 680.50 | 0.50 |
| Global Average Bunker Price | 512.50 | 0.00 | 801.00 | 3.00 |
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