World Oil Prices: Between China’s Sluggish Demand and OPEC+’s Struggle

zajpreneur By zajpreneur
2 Min Read
IHSG Menguat Tipis di Akhir Pekan, Ini Saham-saham yang Bersinar
IHSG Menguat Tipis di Akhir Pekan, Ini Saham-saham yang Bersinar

jlk – Amidst the global market commotion, world oil prices slipped like a surfer losing their board on a big wave.

Brent and WTI, two famous surfers in the oil ocean, each lost 55 and 57 cents from their values. The cause? China’s waning demand, as if this Asian economic dragon decided to go on a strict diet from crude oil.

Meanwhile, OPEC+ played the role of a strict fitness instructor, extending voluntary oil production cuts. They hoped that by reducing intake, the market would regain fitness and oil prices would surge like a pulse rate after cardio.

However, China’s crude oil imports increased in the first two months of 2024 compared to the same period in 2023. This is like someone saying they want to lose weight but still sneaks in chocolate at midnight.

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Analysts at ANZ Research wrote that the extension of production cuts by OPEC+ could tighten the market. This is like saying reducing the number of chairs in a musical chairs game will make the competition fiercer.

In this ironic world, we see how an energy-hungry nation suddenly becomes picky, and an oil cartel usually accused of monopolizing the market is now an unexpected savior.

Perhaps it’s time we reconsider our relationship with oil and start seeking more sustainable alternatives. As the old adage goes:

“Don’t put all your eggs in one basket,” especially if that basket is leaking.

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