Oil prices are stabilizing after recording a third consecutive weekly decline. Brent remains around $61 per barrel, while WTI is above $57. Market participants are currently focused on developments in trade relations between the US and China. US President Donald Trump expressed optimism ahead of a new round of trade talks this week, stating that further tariff increases are not a viable option.
While there is hope for diplomacy, another pressure comes from the projected oil supply surplus, which is expected to last until 2026. The International Energy Agency (IEA) even estimates that this surplus could be larger than previously predicted. Meanwhile, Ukraine’s attack on Russian energy infrastructure remains a factor that could trigger price spikes at any time.
Trump also plans to meet again with Russian President Vladimir Putin to try to end the conflict in Ukraine. However, previous efforts have not yielded results. If there are signs of peace, Citigroup predicts oil prices could fall further, even approaching $50 per barrel.
Several market indicators also point to weakening momentum. The price spread between the nearest Brent contract is narrowing, signaling a decline Short-term demand. Brent for December delivery fell 0.4% to $61.06 per barrel, while WTI for the November contract, which expires soon, fell 0.4% to $57.33. The more actively traded December contract was at $56.93. (asd)
Source: Newsmaker.id