"Crude oil prices were volatile and retreated following a sanctions-driven surge on Tuesday. The market could remain sensitive to the possibility of fresh US sanctions and is assessing the measures targeting vessels involved in Iran's oil shipping network. Traders could also remain cautious ahead of Sunday's OPEC+ meeting on September 7th. The consensus anticipates that the eight members participating in voluntary cuts to maintain current levels, putting a pause to their production increases and potentially anchoring prices within the established range."
"On the data side, traders are forecasting a US crude inventory draw of approximately 3.4 million barrels for the week ending August 29. A draw of this magnitude, to be confirmed in the official EIA report, could reinforce the view of a tightening near-term market balance and could support prices. Looking ahead, the market is underpinned by escalating supply risks, including sanctions on Russia, and signs that OPEC+ could pause production increases, creating a firm price floor for the week."
The crude oil market experienced volatility, retreating after a sanctions-driven surge, while remaining highly sensitive to potential fresh U.S. sanctions and measures targeting vessels in Iran's shipping network. Traders are cautious ahead of the OPEC+ meeting on September 7, where eight members participating in voluntary cuts are expected to pause production increases to maintain current levels. A forecasted U.S. crude inventory draw of about 3.4 million barrels for the week ending August 29 could signal a near-term tightening if confirmed by the EIA. Escalating supply risks, including sanctions on Russia, underpin prices, while demand concerns provide downside risk.
Read at London Business News | Londonlovesbusiness.com
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