Oil Prices Drop Again, Facing Longest Weekly Fall Since 2018

Reasons behind the longest weekly decline in oil prices since 2018. Global concerns persist amid doubts about OPEC+ cuts. Read more now!

Dec 8, 2023 - 10:13
Dec 8, 2023 - 10:13
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Oil Prices Drop Again, Facing Longest Weekly Fall Since 2018
Oil Prices Drop Again, Facing Longest Weekly Fall Since 2018

The price of oil went up a bit after going down for many weeks. But the overall trend shows that this is the longest time oil prices have dropped in a week since 2018. People are worried because there's too much oil in the world, and even though some countries agreed to produce less, it doesn't seem to be working.

Two kinds of oil, Brent and West Texas Intermediate, went up a little, but they are still heading for the seventh week in a row where their prices have gone down. This is not great news for people who make money from selling oil.

The people who trade oil are not very hopeful that the plans to cut down on oil production by a group of countries called OPEC+ will actually help. They think there's still too much oil, especially in the United States where they are producing a lot.

Even though the United States is making a lot of oil, the prices are not going up as expected. Some experts think this is because people are not so sure about the plans OPEC+ has, and they are also not betting that the US will stop making so much oil.

A group of analysts from a company called Macquarie, including Marcus Garvey and Vikas Dwivedi, said, “We believe the market is providing clear signals that should check the conviction of bulls." This means that they think the signs in the market show that people who expect oil prices to go up might be wrong.

There are also worries about how much oil people will need. In China, which uses a lot of oil, experts say they will need less next year compared to this year. In the United States, some economists think there might be a recession, which is not good for businesses, and they might need less oil too.

For a while now, oil prices going down, as well as the prices of things like gasoline, have been helpful for central bankers. These are important people who try to control the money in a country. The prices going down can help them deal with inflation, which is when prices of things go up. For example, in the United States, the price of fuel for cars has become the lowest in a year.

Also Read: Oil Prices Hit Five-Month Low Due to High US Exports and OPEC+ Doubts

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