Today, Oil Prices in Asian Markets are Relatively Stable

By : Abraham Sihombing And Aldo Bella Putra | Monday, November 13 2017 - 20:30 IWST

Kilang Minyak (Ilustrasi)
Kilang Minyak (Ilustrasi)

INDUSTRY.co.id - Singapore - The price of West Texas Intermediate (WTI) crude oil futures rose 7 cents to $ 56.81 a barrel. Meanwhile, the price of Brent crude rose 6 cents to US $ 63.58 per barrel in trading on Monday (13/11/2017) in Singapore.

Today's crude oil prices are relatively stable as market participants are being cautious of the tensions that are emerging in the Middle East after the US has seen an increase in the number of operating rigs.

The US move shows US oil producers are preparing to boost their crude output.

The average trader argues that the current price of crude oil is generally sustained by the decline in production of oil exporting countries incorporated in the Organization of Petroleum Exporting Countries (OPEC) and Russia.

The move by OPEC has contributed to a significant drop in excess supply that has weighed on the market since 2014. Furthermore, tensions in the Middle East will continue to increase supply disruptions.

Last weekend, Bahrain said the explosion that caused the main oil pipeline fire on Friday (10/11/2017), caused by sabotage. The incident allegedly linked the attack to Iran. However, it has been denied.

Despite tensions in the Middle East and OPEC supply cuts, traders are cautious of further price increases. That is due to the increase in American drilling activities for new production.

Meanwhile, the US oil drilling company, Baker Hughes, said, until November 10, 2017, there are 9 additional oil rigs operating in the US. It was the biggest addition since June. Therefore, there are now 738 oil rigs operating in the US.

The total operating rig is an early indicator of future oil production, much higher than 2016 which only operates 452 rigs. The condition also shows that the US petroleum industry is quite comfortable operating at the current level of crude oil prices.

US oil producers have raised production by more than 14% since mid-2016 to 9.62 million barrels per day. That resulted in decline in crude oil futures prices, on Friday (10/11/2017), from the highest level in 2 years ago until the beginning of last week.

Analysts cautioned that WTI and Brent crude prices are experiencing overbought conditions following price hikes in late October and early November, potentially increasing prices. (Abraham Sihombing)

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…