Oil Prices Fall from 7-Week High: What This Means for Investors and Businesses in Oman
LONDON: Oil prices declined Thursday, retreating from the previous session’s seven-week high as some investors booked profits following a drop in US stock markets. Additionally, concerns about slower demand during the upcoming winter and the imminent return of Kurdish oil supplies weighed on prices.
At 0825 GMT, Brent crude futures fell 49 cents, or 0.7%, to $68.82 per barrel. US West Texas Intermediate (WTI) futures dropped 54 cents, or 0.8%, to $64.45 per barrel.
On Wednesday, both benchmarks surged 2.5% to their highest levels since August 1, supported by an unexpected decline in US weekly crude inventories and worries over potential supply disruptions caused by Ukraine’s attacks on Russian energy infrastructure.
Giovanni Staunovo, a commodity analyst at UBS, noted the current market demonstrates a “generally risk-off” sentiment, with two consecutive days of declining US stocks exerting downward pressure on oil prices.
Further bearish sentiment stemmed from expectations of increased crude supply soon from Iraq and Kurdistan. Priyanka Sachdeva, senior market analyst at Phillip Nova, pointed out that the resumption of Kurdish oil exports has revived concerns about an oversupply, leading to a pullback in prices near recent highs.
Oil exports from Iraqi Kurdistan are set to resume within days, following an agreement reached Wednesday between eight oil companies and both the Iraqi federal and Kurdish regional governments.
J.P. Morgan analysts highlighted that US air passenger numbers for September showed only a slight year-on-year rise of 0.2%, down from 1% growth in the two previous months, signaling a slowdown. Correspondingly, US gasoline demand has begun to decline. — Reuters
تحليل خاص من عمانت | تصفح سوق عُمان
The recent dip in oil prices, despite a prior surge, signals potential volatility due to supply dynamics with Kurdish exports resuming and softer US demand indicators emerging. For businesses in Oman, this underscores the need for strategic agility amid fluctuating global energy markets, while investors should closely monitor geopolitical developments and seasonal demand trends to capitalize on pricing shifts. Entrepreneurs could explore diversification opportunities beyond oil, anticipating periods of price correction and evolving market risks.
