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Global Oil Movements and Concerns Over Supply and Demand
Oil prices experienced significant volatility during trading sessions on Monday, October 7, 2024, with a slight decline following last week’s substantial surge, which was the largest in over a year. Prices began to drop due to concerns over increased supply and weakening global demand, despite ongoing geopolitical tensions in the Middle East that raised fears about supply disruptions.
Brent crude fell by 0.4%, settling at $77.74 per barrel, while West Texas Intermediate (WTI) dropped by 0.27% to $74.18 per barrel. Although the decline was modest, the significant rise seen last week highlights the strong geopolitical factors that prompted some investors to lock in profits after the large gains.
Increasing concerns about escalating conflicts in the region led to fears of oil supply disruptions, which supported prices in recent weeks. However, analysts suggest that excess production capacity from major oil-producing countries, along with weak demand from major economies, could limit any major price increases in the near future.
In summary, oil remains vulnerable to fluctuations due to a combination of factors, including persistent geopolitical concerns, weak global demand, and supply pressures, making future market outlooks uncertain.
