Oil prices had a very sharp fall during the week as the Euros to US dollar exchange rate also fell due to the concerns over the Greek debt. There is still high uncertainty over the crude oil supply and whether Saudi Arabia will raise its oil production quota despite the disagreement in the recent OPEC meeting (after all during May Saudi Arabia didn't raise its oil production). There are mixed views on the expected growth in oil demand for the rest of 2011: the IEA raised its projection of crude oil demand in 2011, but the recent slow down in US, Europe and China's economies may adversely affect their demand for crude oil.
All these concerns will continue to affect the oil prices and will determined the future changes in crude oil prices.
Let review the changes during last week (June 13th to 17th) of crude oil prices (Brent oil and WTI), and present a summary of the recent EIA petroleum report:
Oil prices – highlights
WTI oil declined during last week by 4.31%; its weekly average price also decreased by 4.18% as it reached $95.87 per barrel, compared with last week's $100.05 /b. The average daily percent change of oil price (NYSE:WTI) was -1.27%.
Brent price also shed 5.81% from beginning to end, and its average price decreased by 1.13% compared with previous week's average.
The difference between the Brent and WTI prices rose sharply and averaged at $20.52 as it finished the week at $20.48.
These findings suggest that despite the drop in oil prices, there might be a tighter oil market in Europe than in U.S. which could interpret the widening of the gap between Brent and WTI.
for the rest of the review see here:
Oil fell sharply during week - Weekly recap 13-17 June