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WTI crude oil was last seen trading for October delivery, which was at $ 0.60 (or 0.93%) to $ 64.00 per barrel.
To achieve large market stake, OPEC+ nations recently agreed to increase raw production per day 547,000 barrels per day in September. With the end of the current calendar month ending in two days, oversupply concerns are shooting due to the coalition decision.
To end the three-Plaus-year Russia-Ukraine War, US President Donald Trump used danger sanctions against Russia on secondary sanctions to nations buying Russian oil (especially India), as well as attempted to bring leaders of the fighting countries on the table of dialogue.
However, Russia neither faced danger nor gave a favorable response to Ukraine to engage in peace talks.
Yesterday, Russia killed the Ukrainian Navy’s largest reconnaissance ship Simphopol in its first maritime drone attack in the Danube River Delta, killing at least 1 and many disappeared. This growing tension has left traders as the West can shake the related oil prices in the form of restrictions on Russian oil.
In the Middle East, the conversation between Iran and E3 trio (Britain, France and Germany) on Iran’s nuclear program reached a deadlock, Iran refused to allow nuclear inspectors to continue their work.
It left the E3 to declare that Iran’s nuclear program is a threat to international peace.
The three-nation group wrote to the United Nations Security Council yesterday to implement the joint comprehensive plan of “Snapback Claus” of Action. It begins a 30-day process to restore United Nations restrictions on Iran.
While Iran and China condemned the move, the Secretary of State has welcomed it. In particular, Iran’s raw exports had an average of 1.5 million barrels per day in July.
On the demand side, the summer driving season in the US, from IE Memorial Day (26 May) to Labor Day (1 September), is ending. As the world’s largest consumer using about 20.01 million BPD, the decline in travel in the US increases the concerns of demand between traders.
The markets are betting on its upcoming September meeting to cut a 25-base-point rate by US Fed. This decision can affect the US dollar value, which, in turn, can affect the prices of crude oil in the short term.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
