Oil Prices Plummet as Profit-Taking Pressure Mounts
World oil prices saw a sharp decline last week, driven by profit-taking pressure after a strong increase. The WTI crude oil price fell from $86.64 per barrel at the end of the previous week to $83.44 per barrel, representing a decrease of 3.69% compared to the previous week's end. Meanwhile, Brent oil prices dropped from $93.93 per barrel to $88.28 per barrel, resulting in a decrease of 6.02%.
The decline in oil prices was largely due to investors selling after key oils recorded their second consecutive week of increase, with an increase of over 5%. Market participants also believe that economic pressure measures are less likely to disrupt oil supplies than the risk of escalating military conflict.
Additionally, the market is not too concerned about US sanctions against Iran, as investors think it's less likely to disrupt oil supplies. However, negotiations between Iran and Oman over the Hormuz Strait have raised signals of a possible partial restoration of transportation through this important shipping route, contributing to reduced concerns about supply disruption.
The fact that crude oil inventories in the US increased less than expected also contributed to the market's downward trend.