“The oil demand in the Western world, as well as in China, is stagnantwhile supply is expanding, largely thanks to the US shale oil boom,” said Julius Baer analyst Norbert Rucker.
Asian factory activity slumped in August as Covid-19 restrictions in China and cost pressure continued to hurt businesses, coupled with reduced European demand.
a possible revival of the nuclear deal with Iran of 2015, which would allow the OPEC member increase their exports of oil, also weighs on prices. French President Emmanuel Macron said on Thursday that he expects a deal to be finalized in the coming days.
The OPEC production reached 29.6 million barrels per day (bpd) in the most recent month, according to a Reuters study, while US output rose to 11.82 million bpd in June. Both are at their highest levels since April 2020. However, the surplus margin will be lower than expected by the sub-production of OPEC members.
In addition, US crude stocks fell by 3.3 million barrels, the US Energy Information Administration reported on Wednesday, while gasoline stocks fell by 1.2 million barrels.
The G7 will discuss on Friday the possibility of setting a price for Russian oil to reduce its impact on production and on the commodity as a whole.
Source: Ambito
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