World Oil Price Won't Take Place On Saturday Morning

Illustration. (Photo: Doc. Antara)

JAKARTA - Oil prices slipped at the end of Friday's trading (Saturday morning WIB), as traders worried about the deteriorating demand outlook, but noted the first weekly increase in five weeks supported by the possibility that OPEC+ would agree to cut crude oil production when meeting on October 5, 2022. Reporting from Antara, Brent crude futures for November delivery which ended on Friday 30 September, slumped 53 cents, or 0.6 percent, to settle at 87.96 dollars a barrel on the London ICE Futures Exchange. December's more active contract fell 2.07 US dollars to 85.11 dollars per barrel. West Texas Intermediate (WTI) crude futures for November delivery cut 1.74 US dollars or 2.1 percent, to close at 79.49 dollars a barrel on the New York Mercantile Exchange. Brent and WTI rose 2.0 percent and 1.0 percent on a weekly basis, marking the first weekly increase since August and following the nine-month low this week. For September, US crude benchmarks lost 11 percent, and Brent crude fell 8.8 percent, according to Dow Jones Market Data. Brent and WTI prices completed the third quarter with a decrease of 23 percent and 25 percent, respectively. "There must be some profit-taking action from the profits we saw at the start of the week. The position of $80 is a kind of pivot point today," said John Kilduff, partner at Again Capital LLC in New York. "An increase in concerns about financial stability in the UK, undermined demand prospects once again," added Kilduff. Price setbacks occur as oil market players are increasingly afraid that aggressive monetary tightening by central banks could increase the risk of a recession, disrupting fuel demand. "The price change has become a norm as market participants overcome concerns over the global economy and prospects for tightening oil supply," said Stephen Brandnock of oil broker PVM. The market is also awaiting an important decision by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, as the group will meet next Wednesday (5/10/2022) and discuss future production strategies.