The oil market is slightly declining at the beginning of a new trading week

On Monday, there is a slight drop in oil prices – market participants are waiting for updated forecasts from the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) regarding future oil demand. 

OPEC will release its monthly oil market report on Monday, and the IEA will report on Tuesday.

The current Brent quote is $80.77 per barrel. On the previous Friday, the closing price was $81.43 per barrel. North American WTI oil is trading near $76.50. Over the past week, Brent has decreased in price by 4.1%, and WTI – by 4.2%, ending in the red for the third week in a row. 

Experts note that this is due to concerns about a decline in global demand. Over the past three weeks, Brent has lost 12% of its value due to lower demand in China, the United States and Europe, as well as due to a reduction in the risk premium that traders included in the price due to the conflict in the Middle East. The expected disruptions in oil supplies from this region have not occurred.

This week, the focus will be on the reports of OPEC and the IEA. Any signs of a shortage of supply in the market may change the mood of traders who have somewhat relaxed due to the reduction of geopolitical uncertainty.