Oil prices are heading for the fourth consecutive week of decline

Oil prices are heading for a fourth consecutive week of decline, and remained little changed in early Asian trading after falling by about five percent to the lowest level in four months yesterday, Thursday, amid concerns about global demand.

Brent crude futures rose ten cents, equivalent to 0.1 percent, to $77.52 per barrel by 0232 GMT, while US West Texas Intermediate crude saw little change and remained at $72.95. The two benchmarks lost about one-sixth of their value over the past four weeks.

Both the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency expected a supply shortage in the fourth quarter, but some important economic data released around the world this week showed that demand is lower than expected.

The decline in oil prices this week is mainly due to the sharp rise in US crude inventories and the continuation of production at record levels, which analysts say has raised fears of weak demand in the world’s largest oil consumer amid rising production.

J.P. Morgan Commodity Research said on Friday that tracking global oil demand showed that demand averaged 101.6 million barrels per day in the first half of November, 200,000 barrels per day less than its expectations for this month.

Analysts said the recent drop in prices is also likely to prompt Saudi Arabia to extend oil production cuts until 2024.