Global Oil Prices Fall After a Week of Strength

Global oil prices, Brent and West Texas Intermediate (WTI), weakened on Wednesday (September 18, 2024) after strengthening two days prior.

According to Investing.com, the Brent oil price was recorded at US$73.07 per barrel on Wednesday (September 18, 2024) at 9 PM WIB.

This value weakened by 0.85% from the previous day's US$73.7 per barrel. It even strengthened to US$72.75 per barrel on Monday.

Meanwhile, the WTI oil price was US$69.72 per barrel. This weakened from three consecutive days prior: US$69.96 on Tuesday (September 17, 2024); US$69.02 on Monday (September 16, 2024); and US$67.92 on Sunday (September 15, 2024).

In fact, over the week, since September 11, 2024, the benchmark prices for both types have generally strengthened, as seen in the graph.

Reuters reported that oil prices fell on Wednesday, despite rising in the previous two sessions, after industry reports showed an increase in US crude oil and fuel inventories, offsetting rising tensions in the Middle East and the positive impact of US interest rate cuts.

"Crude oil traded lower after weekly increases in US crude and fuel inventories, as reported by the API, helped offset ongoing tensions in the Middle East," Ole Hansen of Saxo Bank told Reuters on Wednesday (September 18, 2024).

However, Brent has recovered after falling below US$70 to its lowest level since December 2021 on September 10. Brent faces resistance around US$75 due to weak global refinery margins signaling sluggish demand, said Ole Hansen.

In addition, observers also cite the end of peak summer oil demand and negative sentiment from traders as contributing to the price decline.

"Although the potential for conflict in the Middle East still poses a risk of supply disruptions," said Mazen Salhab, Head of MENA Market Strategy at BDSwiss.

(Read also: Difference in Indonesia's Crude Oil Exports and Imports Over the Last 10 Years)