Solid Gold Berjangka – Oil prices weakened again in trading on Thursday (Nov 12), with Brent trading at around US$91.39 per barrel and West Texas Intermediate (WTI) at approximately US$85.80 per barrel. The downward pressure stems from easing geopolitical concerns, coupled with growing worries regarding a potential oversupply.
Market sentiment improved following hopes that diplomatic efforts could mitigate the risk of escalating conflicts in the Middle East and the Russia-Ukraine war. This has reduced the geopolitical risk premium that had previously supported oil prices.
Russian and Ukrainian negotiators also agreed on a prisoner exchange during peace talks in Abu Dhabi. Although territorial disputes remain unresolved, this development has raised hopes that the diplomatic path may continue.
On the other hand, tensions with Iran remain a factor that limits further downward pressure. Iran has asserted that it will not surrender its enriched nuclear material and has warned of consequences should the U.S. launch further attacks.
Pressure on oil prices is also coming from the supply side, following an increase in OPEC+ crude oil production in October—driven primarily by a rise in output from Saudi Arabia. This production boost has fueled concerns that global supply could outpace demand growth.
Additionally, U.S. crude oil inventories reportedly rose by approximately 9 million barrels over the past week. The market is now awaiting official data from the Energy Information Administration to gauge the state of U.S. supply and determine the future direction of oil prices. (srh)