Oil prices have declined for four consecutive weeks and remained stable in early Asian trading, following a five percent fall on Thursday. The prices dropped to the lowest point in the last four months due to concerns about the global oil demand. Brent crude futures rose ten cents or 0.1 percent, reaching $77.52 per barrel at 0232 GMT. Meanwhile, the US West Texas Intermediate crude remained at $72.95 with no significant change.
Over the past four weeks, the two benchmarks experienced a decline in value, equivalent to around one-sixth of their original worth.
Some important economic data released this week revealed that demand is lower than expected despite the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency predicting a supply shortage in the fourth quarter.
This week’s decline in oil prices is primarily attributed to the substantial increase in US crude inventories and the continuous production at record-high levels. This has led to concerns among analysts about weak demand in the world’s largest oil consumer, amidst the rising production.
JP Morgan Commodity Research reported that global oil demand averaged 101.6 million barrels per day in the first half of November, which is 200,000 barrels per day lower than expected for this month.
Analysts predict oil production cuts until 2024 due to recent price decline.
