Recently, oil prices experienced a downward trend for four consecutive weeks. It fell 5% to yesterday's low on global demand concerns.
Brent crude rose 10 cents (0.1%) to $77.52 a barrel and US West Texas Intermediate crude was unchanged at $72.95. Both benchmarks have lost a sixth of their value over the past four weeks.
According to an ING research note last Friday, there was little new fundamental development behind the move. A break below the $80 level appears to have brought a fair amount of technical selling.
OPEC and the International Energy Agency have predicted supply shortages in the fourth quarter. However, some key economic data from around the world this week showed demand was lower than forecast.
Oil prices continued to decline due to rising US crude inventories and record production. This led to concerns about weak demand in oil consumers globally amid abundant production.
Analysts predict the recent drop in prices will also cause Saudi Arabia to extend additional oil production cuts until 2024.
ING expects improvement through OPEC policy talks in the coming weeks. The conference will be held in Vienna, November 26.
