Analyst Predicts Global Oil Prices to Weaken on Friday

TEMPO.CO, Jakarta - The global oil prices are expected to weaken to the level of US$ 74.00 - US$78.50 per barrel in Friday’s trading. Prices of oil in the European trade opened at US$75.96 per barrel on Friday, February 3. 

Director of PT Profit Forexindo Berjangka Ibrahim Asjuangbi said that oil prices remained stable last Thursday after falling in the previous session due to the weakening of the US dollar that had boosted sentiments. 

Although sanctions on Russian oil products added to the uncertainty and OPEC+'s decision to continue with production cuts helped ease fears of oversupply.

“The Federal Reserve raised its target interest rate by a quarter percentage point on Wednesday. But continue to promise a sustainable increase in borrowing costs as part of the ongoing battle against inflation," said Ibrahim in a written statement on February 3. 

He believed European Union countries will seek a deal on Friday following the European Commission's proposal in setting the cap for oil products. Last Sunday, the European Commission proposed that starting on February 5, the EU would apply a price limit of US$100 per barrel for premium Russian oil products, such as diesel fuel, and a limit of US$45 per barrel for discounted products, such as fuel.

"While the OPEC+ panel endorsed the producer group's current production policy at a meeting on Wednesday, it left production cuts agreed last year unchanged on hopes of higher Chinese demand and an uncertain Russian supply outlook," he explained. 

OPEC+ agreed to slash the production targets of 2 million barrels per day (bpd), or about 2 percent of world demand from November last year until the end of 2023 to support the market.

RIRI RAHAYU

Click here to get the latest news updates from Tempo on Google News