Crude oil futures in London were trading near $80 per barrel, a level last broken in early May. Shipments via Russia's western ports declined significantly in the four weeks to July, more than four months after the OPEC+ producer was scheduled to cut output. A weaker dollar also helped commodities as investors await the release …
Crude oil futures in London were trading near $80 per barrel, a level last broken in early May. Shipments via Russia’s western ports declined significantly in the four weeks to July, more than four months after the OPEC+ producer was scheduled to cut output. A weaker dollar also helped commodities as investors await the release of the US consumer price index later today for signals on the Federal Reserve’s next steps in terms of monetary tightening. This year’s aggressive interest-rate hikes have weighed on the prospects for energy demand.
Although oil prices have remained modestly lower this year, OPEC+ heavyweights Saudi Arabia and Russia have vowed production curbs to support prices. According to an Energy Information Administration assessment, the worldwide market is likely to tighten in the second half, with stockpiles expected to draw through 2024.
Later today, the EIA will release its weekly update on US crude inventory. According to persons familiar with the data, the industry-funded American Petroleum Institute recorded a 3 million barrel increase in inventories last week. Traders will also be looking for monthly reports from the International Energy Agency and OPEC on Thursday for views of the global oil market.
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