The Middle Eastern crude oil market is showing more signs of weakness amid growing concerns about a global glut that could drag prices still lower. The discount of the regional Dubai benchmark to Brent crude oil futures was at the widest since August on Monday, Bloomberg reported, suggesting ample supplies. The global oil market has been dominated by concerns that worldwide supplies have been running ahead of demand after OPEC+ producers and other drillers ramped up output. Against that backdrop, Brent futures — the leading oil benchmark — sank by 18% last year to cap the worst annual showing since 2020. Meanwhile, investors betting on growth in Venezuela oil output after the U.S. last weekend ousted its dictator “will need deep pockets and patience, as aging infrastructure will require billions of dollars in spending. The regular timeframes to increase oil output are likely to be longer in Venezuela than elsewhere due to the challenges faced by the industry. To maintain production of 1 million barrels a day, Venezuela would likely need more than the industry standard of roughly $5.5 billion in annual investment,” said Bloomberg.
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More Signs of a Global Crude Oil Glut
Growing concerns about a global glut that could drag prices still lower.
(AgWeb)
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