World Oil Prices Approach Lowest Level, Brent Falls to USD83 per Barrel

JAKARTA – Crude oil price The world fell close to its lowest level since mid-March 2024, when the United States (US) oil stock report was somewhat bearish. Meanwhile, sentiment regarding Middle East tensions is still in the spotlight among market players.

Reported by Reuters today, Wednesday (8/5/2024) it was recorded Brent slumped below USD 83 per barrel after falling to its lowest level since March 13. Whereas for crude oil US futures, namely West Texas Intermediate, fell to the position of USD77/barrel.

Crude stockpiles at Cushing rose by more than 1 million barrels last week, based on industry estimates, according to people familiar with the figures. On the other hand, the situation in the Middle East, when the Israeli military moved into the city of Rafah in Gaza, is still difficult to understand.

Global crude oil has been on a downward trend since early April, posting losses in three of the last four weeks, with indicators from timescales to processing margins pointing to a weaker outlook.

The strengthening of the US dollar is an additional pressure, because it makes commodity prices more expensive for many investors.

“While there is weakness amid rising stockpiles and waning geopolitical threats, there is support coming from ongoing supply-side risks,” said Han Zhong Liang, investment strategist at Standard Chartered Plc.

It said there were several underlying factors, including the upcoming OPEC+ meeting in June and new restrictions on Iranian and Venezuelan oil. The Organization of the Petroleum Exporting Countries (OPEC) is scheduled to meet next month to assess supply policy following production cuts during the first half of the year to support oil prices.

Most traders expect that restrictions will be extended, perhaps until the end of the year, according to a Bloomberg survey.

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