Oil prices experience pullback globally


(MENAFN) Oil prices experienced a pullback in early trading on Monday, following a remarkable surge that marked the largest weekly increase in over a year. On Friday, both brent and U.S. West Texas Intermediate (WTI) crude saw substantial gains, leading investors to take a cautious approach as they adjusted their positions.

According to Bloomberg Economic News, Brent crude futures fell by 43 cents, settling at USD77.62 per barrel. Meanwhile, U.S. West Texas Intermediate crude futures declined by 35 cents, or 0.5 percent, to reach USD74.03 per barrel. These shifts indicate a tempering of the exuberance seen in the previous week.

Last week was particularly notable for oil prices, as Brent recorded a rise of over 8 percent, representing its largest weekly gain since January 2023. Similarly, West Texas Intermediate experienced an impressive increase of 9.1 percent, marking its most significant weekly rise since March 2023. This surge was driven by various factors, including supply constraints, geopolitical tensions, and robust demand projections, which fueled optimism among traders.

The recent fluctuations in oil prices reflect the complex dynamics of the global energy market. Analysts and investors are closely monitoring ongoing developments that could influence future price movements. Supply chain disruptions, changes in OPEC+ production policies, and economic indicators will play critical roles in shaping the outlook for oil in the coming weeks.

As the market navigates this phase of volatility, traders are expected to keep a watchful eye on inventory reports, demand forecasts, and any geopolitical developments that could impact supply. The retreat in prices on Monday serves as a reminder of the unpredictable nature of the oil market, where gains can be quickly tempered by shifting market sentiments.

In summary, while last week brought significant upward momentum for oil prices, the early decline on Monday indicates a cautious market environment as investors reassess their positions and look toward upcoming economic indicators for direction. The interplay of global supply and demand factors will remain at the forefront as the market adapts to ongoing changes.

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