PT Solid Gold Berjangka | Oil Falls After Weekly Loss as Traders Focus on Middle East Risk

01:02 22 April in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

Minyak Oil, PT SGB Solid Group SG Berjangka Solid Gold Berjangka

Solid Gold Berjangka | The recent dip in oil prices marks the first consecutive weekly decline in 2024, reflecting the complex interplay between geopolitical tensions and market dynamics. Brent crude slipped below $87 a barrel following a 3.5% decrease last week, the most significant drop since early February. The market appears to be in a state of cautious anticipation as traders assess the potential ramifications of the recent actions by Iran and Israel in the Middle East.

Last Friday saw significant volatility in oil prices, with Iran downplaying Israel’s response to its drone and missile strike on the Jewish state, contributing to an “uneasy calm” in the market. Additionally, the US House passing new sanctions on Iran’s oil sector and providing fresh funding for Ukraine amidst its conflict with Russia have added to the geopolitical backdrop influencing oil prices.

Despite these uncertainties, money managers are displaying bullish sentiment towards Brent, with positions reflecting the highest level of optimism since March 2021. This bullishness extends to other markets as well, with oil call options trading at a premium over puts, indicating a prevailing expectation of price increases.

The geopolitical tensions, coupled with supply cuts by OPEC+ that have tightened the market, have driven oil prices approximately 13% higher this year. However, investor attention is also turning to upcoming US economic data, particularly the Federal Reserve’s preferred measure of inflation, which will offer insights into the trajectory of monetary policy.

Additionally, market watchers will be keenly observing earnings reports from major oil companies such as TotalEnergies SE, Chevron Corp., Exxon Mobil Corp., as well as Asian firms like Reliance Industries Ltd. and Cnooc Ltd., providing further indications of the industry’s health and potential future developments.

As of now, Brent for June settlement has fallen 0.5% to $86.82 a barrel, while WTI for May delivery, set to expire Monday, rose 0.1% to $83.02 a barrel. The more-active June contract eased 0.5% to $81.81. These fluctuations underscore the ongoing volatility and uncertainty in the oil market amid geopolitical tensions and shifting economic indicators.