PT Solid Gold Berjangka | Oil On Track For Sharpest Weekly Decline Since March
Thank you for providing the information about the recent developments in the oil market. It seems that oil prices have experienced a significant decline during the week, largely attributed to concerns about higher interest rates impacting global economic growth and subsequently reducing fuel demand. This decline marks the steepest weekly drop since March.
Both Brent and WTI benchmarks had reached their highest levels of 2023 the previous week, but they saw substantial decreases during the current week. Brent dropped by 11.8%, and WTI dropped by about 8.8% within the week.
Despite an initial rise in oil prices during early trading on Friday, the concerns about the potential economic slowdown due to higher interest rates continued to weigh on the market. Brent futures were up by 0.4% at $84.43, and U.S. West Texas Intermediate crude futures were up by 0.5% at $82.73, showing a slight recovery from a 2% decline on Thursday.
In addition to concerns about interest rates, bond investors are also worried about escalating government spending and a growing budget deficit in the United States, the world’s largest oil consumer. These worries have triggered a significant sell-off, pushing Treasury prices to 17-year lows.
Regarding OPEC+, a ministerial panel meeting was held during the week, but no changes were made to the group’s oil output policy.
Source: Reuters