Why oil prices may trend even lower after posting a third straight weekly decline
By
Myra P. Saefong
Oil markets have been relatively weak recently, and that trend should continue given easing tensions in the Middle East and expectations for a supply surplus, said Tariq Zahir, managing members at Tyche Capital Advisors.
U.S. benchmark prices for crude oil posted a 2.3% decline for the week for their third straight weekly declines, according to Dow Jones Market Data. November West Texas Intermediate crude settled at $57.54 a barrel on Friday.
With theIsrael-Hamas cease-fire deal and the release of hostages, the situation in the oil-rich Middle East has calmed down for now, Zahir said. Global supplies, meanwhile, are expected “to be in abundance,” he said, adding that there have been “no real disruptions” in output this year during the Atlantic hurricane season, while Saudi Arabia has been contributing more oil to the global market.
Oil markets are likely to “continue to be weak in the days and weeks ahead,” said Zahir. “Any strength in the energy markets we feel will be an opportunity to sell into.”
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