PT Solid Gold Berjangka | Oil Steady Near Lowest Since June With Oversupply Fears in Focus

00:59 12 December in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Minyak WTI Brent PT SGB, Solid Group, SG Berjangka

Solid Gold Berjangka | Oil was steady near a five-month low with oversupply concerns in focus after OPEC+’s pledges to extend and deepen output cuts failed to halt a slump in prices.

West Texas Intermediate traded above $71 a barrel, while global benchmark Brent was near $76. Skepticism that alliance members will fully adhere to the voluntary reductions, along with surging production from non-OPEC suppliers, particularly the US, has raised fears of a widening surplus.

Oil has fallen for the last seven weeks, the longest such run since 2018, and is down by around a fifth since late September. On the demand side, Chinese consumption growth is forecast to slow next year, and there’s a chance of a recession in the US. Citigroup Inc. said OPEC+ will need to extend its output curbs through the whole of next year just to keep prices in a $70 to $80 a barrel range.

Traders will be monitoring several market snapshots due this week. The Energy Information Administration releases its short-term outlook on Tuesday, followed by OPEC a day later and the International Energy Agency on Thursday. The Federal Reserve ’s final rate decision of the year is also due Wednesday.

WTI for January delivery rose 0.1% to $71.40 a barrel at 7:58 a.m. in Singapore.

Brent for February settlement closed 0.3% higher at $76.03 a barrel on Monday.

Source : Bloomberg