Analysts warn of the longest drop in oil prices since 2018

Oil prices continue to decline and are likely to end the week in the red. Brent crude oil prices have been declining for the seventh week in a row, which is the longest period of decline since 2018.

At the moment, the price of Brent crude futures for February is $75.6 per barrel, reflecting an increase of 2.09%. However, despite this rebound, oil prices have declined by 4.07% or $3.21 per barrel since the beginning of the week. If the price does not rise above $78.88 per barrel by the end of the week, it will mean that oil will end the week in the red zone again.

Analysts note that the main reason for the decline in oil prices is related to fears of an excess of oil on the world market. Traders doubt that a stronger reduction in supply from OPEC+ countries will be effective.

Despite OPEC+'s decisions to reduce supplies, some non-alliance countries are actively increasing oil production. The rapid growth of oil supplies from the United States is one of the reasons for concern in the market.

In addition, there are concerns about the future demand for oil. China's oil consumption is expected to grow less significantly next year than in 2023. The United States also expects a recession in 2024, which could negatively affect oil consumption.