By Li Xing, Financial Markets Strategist Consultant to Exness
Oil prices were poised to record a weekly decline after rebounding for two weeks. Prices were retreating for a third consecutive day under the weight of mounting concerns about rising supply. Bearish signals from both the United States and the OPEC+ policy outlook could continue to overshadow geopolitical risks.
Sentiment deteriorated following the latest report from the Energy Information Administration (EIA), which revealed an unexpected 2.4-million-barrel increase in U.S. crude inventories. This directly contradicted analyst forecasts for a 1.8-million-barrel draw and bolstered the case for weakening domestic demand.
Looking ahead, traders are awaiting the upcoming OPEC+ meeting scheduled for this Sunday, September 7th. The organization could decide to increase its oil production further. Additional volumes could fuel a global supply surplus and weigh on prices.
Traders’ concerns are amplified by a broader backdrop of a softening fuel demand outlook. However, price declines could be capped by geopolitical risks.