Oil prices are falling for the second consecutive week due to persistent fears of oversupply in the market. This is reported by UNN with reference to Reuters.
Details
On Friday, oil prices rose slightly after three days of decline. Brent crude futures rose 28 cents (0.44%) to $63.66 a barrel, and West Texas Intermediate (WTI) crude rose 29 cents (0.49%) to $59.72 a barrel. However, prices are still on track to fall.
This decline is due to several factors. The main ones are an excess of oil inventories in the US, a slowdown in energy demand, and uncertainty due to economic difficulties in the US.
US crude oil inventories rose by 5.2 million barrels, which was an unexpected factor for the market. This again raised fears of oversupply, which could lead to a drop in prices.
As IG Markets analyst Tony Sycamore noted, "this is exacerbated by risk-off flows, a strengthening dollar, and the ongoing US government shutdown, which continues to cloud economic activity."
At the same time, oil prices were pressured by political problems in the US, in particular due to the lack of government budget solutions that affect the country's economy.
Recall
Oil prices rose on Thursday after two-week lows, with Brent and WTI futures increasing by 0.27% and 0.3% respectively. Easing sanctions and OPEC+'s production plan affected the market, but demand concerns remain.