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Global benchmarks for crude oil ended the week on Friday, November 15, with more than 2% losses on intensifying concerns over the state of demand in China. Meanwhile, the reduced prospect of aggressive interest rate cuts in the US sent the dollar rallying, pressuring commodities traded in dollars.

Brent crude fell $1.52, or 2.09%, to settle at $71.04/barrel.

WTI decreased by $1.68, or 2.45%, to close at $67.02/barrel.

The decline was driven by signs of a faltering economic recovery in China, the world's largest oil importer. Data from October showed a 4.6% year-on-year drop in crude processing by Chinese refineries, largely attributed to plant closures and reduced operational capacity. Despite government efforts to stimulate growth, China's economy continues to struggle, exacerbating concerns about sustained demand for oil.

On the supply side, the International Energy Agency (IEA) has projected a significant global oil surplus of over 1 million barrels per day in 2024, primarily due to weaker Chinese demand. This anticipated surplus could offset potential disruptions from geopolitical tensions in the Middle East, mitigating supply risks.

Written by: Muhammad Hafiz