By Joseph Dahrieh, Managing Principal at Tickmill
Crude oil futures remained under pressure in a fourth trading session of decline. OPEC+’s recent decision to increase production by around 547,000 barrels per day in September could add to the expectations of oversupply. This surge in production, coupled with steady output from non-OPEC producers, could weigh on crude prices.
Demand signals from key global consumers remain subdued. In the United States, signs of labour market deceleration and broader economic uncertainties could temper expectations for fuel consumption. Meanwhile, China’s shift away from stimulus towards structural reforms has further dampened oil demand prospects.
However, any escalation in geopolitical tensions could lead to meaningful supply disruptions and could drive oil prices to the upside. In the meantime, traders could continue to monitor new data, including crude inventory figures and broader US economic data.