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WTI crude oil for October delivery was last seen trading at $ 1.65 (or 2.52%) to $ 63.94 per barrel.
OPEC+ coalition is in the process of re -claiming market share. The alliance, which pumps almost half of the world’s oil needs, has already reversed output cuts from April.
Eight OPEC+ countries are meeting on Sunday to decide on October output. It is widely stated that another output is in hike offing, although some traders believe that the group may also opt for the increase in October.
Traders, however, are concerned about markets, who are hit with potential oversupply, they are looking closely at the events.
At his final meeting in August, Cartel agreed to increase 547,000 barrels output per day for September.
On the geo -political front, there is no indication of the end of the war between Russia and Ukraine, both sides are engaged in the exchange of attacks by both sides.
Trump’s mediation between the two nations as well as their “sanctions” against Russia’s oil exports has remained fruitless as Russia remains non -cooperative for any peace push.
If Trump implements his proposed sanctions against Russian oil exports, it may trigger a major supply side concern.
On the demand front, the market consent appears that the strong summer demand is at its peak and global oil consumption may slow down in the fourth quarter.
In the US, the Federal Reserve is expected to cut rates in their 16–17 September meeting, which can affect the value of the US dollar.
Trump fired a Fed Board of Governor last week, which was widely seen as an attempt to claim his impact on the Fed.
Since crude oil is a dollar-sect item, traders are looking closely at the fed moves.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
