"Oil prices edged lower on Thursday, pausing a three-day rebound that was fuelled by escalating geopolitical risks. These risks include heightened tensions in the Middle East and the potential for new US energy sanctions against Russia amid reports of drone incursions into Polish airspace. Yesterday, oil prices gained after the incidents in the Middle East and Eastern Europe. Investors are also monitoring potential US actions against Russia, which could lead to tighter sanctions and affect global supply."
"However, a key driver for today's price decline was mounting evidence of softening demand in the United States. US crude inventories unexpectedly rose by 3.9 million barrels last week, signalling weaker-than-expected summer demand and contributing to concerns of an oversupply. This has led to prices easing, with pressure intensified by signs of broader economic softening in the US. Adding to oversupply worries, the International Energy Agency (IEA) has raised its oil supply forecasts, pointing to a larger surplus ahead."
Oil prices paused a three-day rebound and edged lower amid competing supply and demand signals. Geopolitical tensions in the Middle East, reports of drone incursions into Polish airspace, and potential US energy sanctions on Russia supported recent gains. However, US crude inventories rose unexpectedly by 3.9 million barrels, signaling weaker summer demand and adding oversupply concerns. The IEA raised oil supply forecasts as OPEC+ and non-OPEC producers increased output, projecting supply growth that will outpace modest demand gains in 2025. Traders are balancing a potential supply glut and softening US demand against geopolitical risks and possible policy shifts.
Read at London Business News | Londonlovesbusiness.com
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