Oil prices dropped in October despite world economic growth forecast

VIENNA, Nov 12 (KUNA) -- OPEC's monthly report released on Wednesday showed that the OPEC Reference Basket (ORB) value, in October, dropped by USD 5.19/b, month-on-month (m-o-m), to average USD 65.20/b. The ICE (Intercontinental Exchange) Brent front-month contract dropped in October by USD 3.63/b, m-o-m, to average USD 63.95/b, and the NYMEX WTI front-month contract dropped by USD 3.46/b, m-o-m, to average USD 60.07/b. The GME Oman front-month contract dropped in October by USD 5.09/b, m-o-m, to average at USD 64.95/b.
The Brent-WTI front-month spread averaged USD 3.88/b in October, down by 17آ¢/b, m-o-m. The market structure of all three crude benchmarks - ICE Brent, NYMEX WTI and GME Oman - weakened further in October.
However, the front end of the forward curves remained in backwardation, reflecting healthy physical oil market fundamentals. Hedge funds and other money managers maintained a bearish stance on crude oil futures for most of the month of October.
Meanwhile, the global economy is expected to maintain its stable growth trajectory, supported by the momentum observed so far this year. The global economic growth forecasts remain at 3.0% for 2025 and 3.1% for 2026, both unchanged from the previous monthآ’s assessment.
The global oil demand growth forecast for 2025 remains at about 1.3 mb/d, y-o-y, unchanged from last monthآ’s assessment. In the OECD, oil demand is forecast to grow by about 0.1 mb/d in 2025, while the non-OECD is forecast to grow by about 1.2 mb/d. In 2026, global oil demand is forecast to grow by about 1.4 mb/d, y-o-y, unchanged from last monthآ’s assessment. The OECD is forecast to grow by about 0.1 mb/d, y-o-y, while the non-OECD is forecast to grow by about 1.2 mb/d, y-o-y. (end) amq.rk