Illustration of crude oil (REUTERS / Edgar Su / Files).

Declined More Than 4 Percent, World Oil Prices Weakened

Estella Claudia
Market & Investment
Stocks & Bonds
Jul 03, 2019
1663
USA - According to Reuters, on Wednesday (3/7) United States (US) time, the price of Brent crude oil futures declined from USD 2.66 or 4.1 percent to USD 62.4 per barrel. The decline in oil prices occurred as the decision result by the Organization of the Petroleum Exporting Countries (OPEC) which will extend the policy of cutting production of crude oils.

Ritterbusch & Associates Chairman, Jim Ritterbusch mentioned that, the increasing indications of a global economic slowdown remain the biggest negative consideration of prices in the energy sector and the need for OPEC to extend the policy of further production cuts that need to be fixed.

It is reported that, on March 2020, OPEC and its allies including Russia have agreed to cut production as the policy was taken at a meeting held on Tuesday (2/7) in Vienna, Austria. Apparently, all members get rid of differences in order to boost the prices and continue to cut combined production by 1.2 million barrels per day, or 1.2 percent of world oil demand.

A PVM analyst Tamas Varga also stated that, the supply side of oil equations supports oil price, however, the demand worries are forcing oil prices to be lower than the previous prices.

The price of US West Texas Intermediate (WTI) crude oil was also weakened from USD 2.48 or 4.8 percent to USD 56.25 per barrel even though the two benchmark prices have touched their highest level in the last five weeks in trading earlier this week.

According to the source, at a meeting of the G20 member countries last week in Japan, the US and China agreed to restart trade negotiations soon. However, factory activities in June 2019 have declined in Europe and Asia and this condition unfortunately also experienced by the US with manufacturing activities slowing to the lowest level in the last three years as well and still waiting for further production information.

Source: https://www.cnnindonesia.com/ekonomi/20190703072138-85-408519/sempat-menguat-harga-minyak-dunia-kembali-loyo

Declined , World , Oil , Prices