The data points to a decline in short-term crude oil trends amid recent oil demand and price concerns.
The movement of oil prices which had previously increased has seen a change when the demand for crude oil in the United States (US) and China is now decreasing.
Following WTI and Brent crude currently trading at $78.44 and $82.55 per barrel respectively, there are expectations that the price may continue its downward trend.
The Energy Information Administration predicts that oil production will increase but demand may decrease, so gasoline consumption in 2023 is expected to hit a two-decade low.
In China, gloomy economic trends and low consumer prices have raised concerns over the country's oil consumption. They requested that the supply of oil be reduced by Saudi Arabia this December.
On the supply side, the US has shown a decline in their active oil rig production and shows potential for future reductions. The upcoming OPEC+ meeting will have an impact on oil prices.
Although the latest forecast for crude oil is rather gloomy due to the uncertainty of the main market demand. Supply side factors and strategic decisions by crude oil producers can influence the market.
Changes in economic and geopolitical conditions continue to play an important role in determining the condition of oil prices in the future.
