Futures contracts for crude oil dropped for the fourth consecutive session on Thursday, May 23, ahead of the busy Memorial Day weekend.

WTI crude oil fell by 3%, while Brent crude oil dropped by 4% since the start of the week.

By the end of the trading session on May 23, WTI crude oil lost 70 cents (equivalent to 0.9%) to $76.87 per barrel. Brent crude oil declined by 54 cents (equivalent to 0.66%) to $81.36 per barrel.

Oil prices have been stuck within a $3 range since their peak in April 2024, as concerns about a broader-scale war in the Middle East have eased, and investors have refocused on fundamental supply and demand factors.

Giovanni Staunovo, a commodities analyst at UBS, noted that oil prices have struggled to break out this month, with investors remaining cautious that higher interest rates for an extended period could stall the U.S. economy and exert pressure on oil demand.

Investors are also worried about rising global oil inventories following a relatively mild winter in some regions of the Northern Hemisphere, Staunovo added.

However, UBS sees the oil market as being in deficit and forecasts that Brent oil prices will rise to $91 per barrel in the coming months. UBS also anticipates steady demand growth of 1.5 million barrels per day in 2024, higher than the long-term growth rate of 1.2 million barrels per day.

Source: Vietstock