Oil prices have declined slightly, but remain near monthly highs
3 September 08:41
On Wednesday, oil prices declined slightly in Asian trading, but remained near last month’s highs. This dynamics is taking place against the backdrop of new US sanctions against a network of shipping companies and ships, as well as in anticipation of the results of the OPEC meeting next weekend. This was reported by "Komersant Ukrainian" with reference to Reuters.
According to OilPrice.com, the price of Brent crude oil decreased by 18 cents (0.26%) to $68.96 per barrel as of 08:34 Kyiv time. US West Texas Intermediate fell by 15 cents (0.23%) to $65.44 per barrel.
The day before, these benchmarks ended trading up more than 1% after the US imposed new sanctions on a network of shipping companies and ships for smuggling Iranian oil under the guise of Iraqi oil.
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What market analysts say
“Oil futures continue to receive support from fresh sanctions, which signal a possible reduction in supply in the future. Structural volatility persists as sanctions against Iran and geopolitical tensions create a risk premium and keep oil near recent highs,”
– said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova.
The market is also awaiting the results of the meeting of the eight OPEC members on September 7. Analysts believe that the group is unlikely to make additional changes to production volumes.
“Geopolitical risks continue to influence oil price trends. The market is watching the upcoming OPEC meeting and remains tense over possible further growth, which could lead to oversupply,”
– commented Emril Jamil, Senior Analyst at LSEG.
Prices are also being supported by an expected decline in US crude stockpiles last week, along with a decline in distillate and gasoline stockpiles, a Reuters preliminary survey showed on Tuesday.
Three analysts polled by Reuters ahead of the release of the weekly inventory data estimated that crude stockpiles fell by an average of about 3.4 million barrels in the week to August 29.
However, weak economic data is holding back price growth. U.S. production declined for the sixth consecutive month as U.S. President Donald Trump’s tariffs undermine business confidence and economic activity, negatively impacting oil demand forecasts.
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