Oil headed for 4th weekly loss after sinking 5% on demand concerns; Brent at $78/bbl on week-long selloff
₹6,252 per bbl, having swung between ₹6,070 and ₹6,261 per bbl during the session so far, against a previous close of ₹6,026 per barrel. -Oil's decline this week was mainly triggered by a steep rise in US crude inventories and production sustaining at record levels, while signs of thawing demand in China also triggered concerns.
Also Read: Saudi Arabia likely to extend additional oil supply cuts beyond December 2023: Report -With Brent below $80 a barrel, a barrage of analysts now expect the Organisation of Petroleum Exporting Countries and its allies (OPEC+), principally Saudi Arabia and Russia, to extend their voluntary cuts into 2024. -Another factor contributing to negative sentiment was the number of Americans filing new claims for unemployment benefits increasing, and a slight contraction in industrial production figures.
-"Oil prices are down slightly this year despite demand exceeding our optimistic expectations," Goldman Sachs analysts said in a note. "Non-core OPEC supply has been much stronger than expected, partly offset by OPEC cuts." -World's top exporter Saudi Arabia is expected to extend its additional voluntary supply cuts to at least the first quarter, if not the first half of 2024, Amrita Sen, co-founder of consultancy Energy Aspects said on Wednesday.
-For 2023, the US, which makes up two-thirds of non-OPEC growth, is forecast to deliver annual gains of 1.4 million barrels per day (bpd) – boosting production to a fresh annual high, the International Energy Agency (IEA) said in its latest report. -But the drop in oil prices on Thursday had some analysts questioning whether the selloff was overdone, particularly in light of escalating tensions in the Middle East that could disrupt oil supplies and the
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