Illustration of oil. (Photo: CNN Indonesia / Agus Triyono)

Slow Global Economy, World Oil Prices still Stable at USD 62.29 per barrel

New York, USA - Investors have been worried for some time that the global economic slowdown will reduce demand for crude oil in the world. However, on Tuesday's trade (6/11) it is reported that world oil prices are still relatively stable.

According to Reuters, on Wednesday (12/6), Brent oil did not change the oil price at the level of USD 62.29 per barrel. Meanwhile, US West Texas Oil Price Intermediate (WTI) closed up slightly at USD 0.01 to USD 53.27 per barrel, making the world oil prices do not have significant changes.

However, the price of Brent and WTI have slumped around 20 percent from this year's highest level reached in April. The trading war between the US and China is issued as the reason of slowing demand and economic growth that affected the world oil prices as well.

On Monday (10/6), Russian Energy Minister Alexander Novak said that, there is still a risk related to oil producers to produce too much crude oil that the prices dropped sharply. The statement indicated the possibility that Russia would support the extension of the policy of cutting production.

Again Capital LLC Analyst, John Kilduff stated that, oil projections have been an important component of the oil market lately. However, at the same time, global economic data provided several negative surprises caused by the US-China trading war. China said they will allow its regional government to use special bonds as capital to finance large investment projects.

While the prospect of demand concerning oil prices has dimmed, the world's top oil exporter almost extended its production reduction agreement to support world oil. It is reported that, Organization of the Petroleum Exporting Countries (OPEC) and its allies will extend their policy of cutting production and still supporting and expecting the world oil prices to always moving stably.

Source: https://www.cnnindonesia.com/ekonomi/20190612065324-85-402557/harga-minyak-dunia-bergerak-stabil