The oil markets have witnessed a contraction today, as oil and raw gasoline prices decreased, and are affected by the dollar, the promotion and deliberate optimism regarding the American commercial negotiations. According to a recent report, raw oil decreased in September (CLU25) by -0.48 (-0.73 %), while RBob gasoline decreased in September (RBU25) by -0.0029 (-0.14 %).
Also read: The US dollar is returns while Trump declares a new trade tariff
Global economic indicators also increase energy demand, as new orders of American capitalist goods have decreased unexpectedly by -0.7 % in June, unlike the expected increase by 0.1 %. Meanwhile, the UK has reported an increase of +0.6 % in retail sales with the exception of car fuel for June, and the expected growth of +1.2 %.
In addition to pressure on crude prices, Iraq is scheduled to resume oil exports from its northern Kurdish region through the Iraq Torky pipeline, which is likely to provide 230,000 barrels per day (BPD) to the market. This development comes at a time when Iraq plans, the second largest oil producer in OPEC, to increase its raw exports.
On the geopolitical front, the recent sanctions of the European Union were provided for Russian oil, which targeted more than 400 ships and several banks, some support for oil prices. However, concerns related to a global oil surplus, especially after OPEC+ announced plans to increase crude production by 548,000 barrels per day starting August 1, with a possible increase on the horizon.
On the contrary, the decline in crude oil stored on fixed carriers, a 14 % decrease to 66.31 million barrels, provides an upward view of oil prices. In addition, the US Energy Information Administration has reported a decrease in US crude oil production and a decrease in active oil platforms to the lowest level in 3.75 years at 422, indicating possible supply restrictions.
Source: Indexbox Market Intelligence
