Oil futures increasingly immersed due to slowing demand. At the same time, high global oil production has hit oil prices to the lowest level.
West Texas Intermediate (WTI) for delivery next month is in the range of USD 36.75 per barrel or down 6 cents from the closing price on Monday (28/12). While the international benchmark Brent oil also declined 3 cents to USD 36.59 per barrel and the US dollar is less than one dollar only from 11-year lows.
Oil output from the main exporting countries such as Russia, OPEC and the US shale producers have approached the highest production level, but at this time the condition of being a large-magnitude demand that the fall in oil prices further. The condition is not always expected to take place. Analysts from JBC Energy said that the growth in demand for refinery products edged negative in October for the first time during the last 10 months. Likewise with demand from China also slowed.
That changed this month WTI oil prices just now turned higher than Brent after the US lifted a ban on the export of crude oil. Analysts expect this pricing structure will persist, mainly because the global market is experiencing a decline in demand and supply of oil while the US tightens its shale drilling.
West Texas Intermediate (WTI) for delivery next month is in the range of USD 36.75 per barrel or down 6 cents from the closing price on Monday (28/12). While the international benchmark Brent oil also declined 3 cents to USD 36.59 per barrel and the US dollar is less than one dollar only from 11-year lows.
Oil output from the main exporting countries such as Russia, OPEC and the US shale producers have approached the highest production level, but at this time the condition of being a large-magnitude demand that the fall in oil prices further. The condition is not always expected to take place. Analysts from JBC Energy said that the growth in demand for refinery products edged negative in October for the first time during the last 10 months. Likewise with demand from China also slowed.
That changed this month WTI oil prices just now turned higher than Brent after the US lifted a ban on the export of crude oil. Analysts expect this pricing structure will persist, mainly because the global market is experiencing a decline in demand and supply of oil while the US tightens its shale drilling.
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