Oil Prices Inch Up After Three Days of Continuous Decline, November 17, 2023

Brent crude oil futures, as compiled by Investing.com, were recorded at US$77.96 per barrel in Friday's (17/11/2023) trading at 17.30 WIB.

Although the figure continues to fluctuate, this price shows a slight strengthening from the previous trading days, which had seen a three-day decline.

On Monday (13/11/2023), the price was recorded at US$82.52 per barrel, falling to US$82.47 per barrel on Tuesday (14/11/2023). It then fell to US$81.18 per barrel on Wednesday (15/11/2023).

The Brent oil price then plummeted to US$77.42 per barrel on Thursday (16/11/2023). This was the lowest price since July, as shown in the graph.

Meanwhile, West Texas Intermediate (WTI) crude oil futures also saw a 0.56% increase on Friday (17/11/2023), reaching US$73.56 per barrel.

Similar to Brent, WTI also experienced a three-day decline. On Monday (13/11/2023), the price was recorded at US$78.26 per barrel, falling to US$78.26 per barrel on Tuesday (14/11/2023).

The price then fell again to US$76.66 per barrel on Wednesday (15/11/2023), before plunging to US$73.06 on Thursday (16/11/2023). Thursday's trading price was the lowest since July 2023.

Reasons for the temporary drop in oil prices

According to Katadata, investors are now concerned about global oil demand following weak economic data from the United States (US) and China. Phil Flynn, an analyst at Price Futures Group, said these concerns have negatively impacted global crude oil prices.

"It takes something to change sentiment, and until that happens, people will continue to drive it down (oil prices)," Phill told Reuters, as quoted on Friday (17/11/2023).

The worrying US report showed a rise in new jobless claims to their highest level in three months, indicating a deteriorating labor market.

The Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) have predicted tight supplies in the fourth quarter of this year. However, US energy data released last Wednesday showed abundant oil supplies.

The decline in crude oil prices is also due to conditions in China's oil refining capacity. Production fell in October from the previous month's peak due to weakening industrial fuel demand and narrowing refining margins.

However, China's economic activity rebounded last month. This is evident in the faster growth of industrial production and retail sales growth exceeding expectations.

Oil prices have also been affected by the situation in the Middle East. The Israel-Hamas conflict continues to escalate in Gaza. US officials said on Wednesday that they would impose oil sanctions on Iran, a long-time supporter of Hamas.

(See also: Although Israel-Hamas War, World Oil Prices Fell in October 2023)