Oddbean

Brace for choppy oil market in near-term, say analysts ========== Analysts are advising caution as the oil market is expected to remain volatile in the near term; Oil prices dropped to as low as US$75 on July 5, the lowest since December 2023, before rebounding later in the day; Brent crude added 0.27% to US$76.69 per barrel, while West Texas Intermediate advanced 0.37% to US$73.47 per barrel; Prices plunged last week as fears of a recession in the United States gathered pace and previously bullish investors sold their petroleum positions; The possibility of supply disruptions in the Middle East is helping to keep prices from falling off a cliff; SPI Asset Management managing partner Stephen Innes said that despite tensions in the Middle East, there has not been a major disruption to oil production; The US presidential election on November 5 could impact the future of the US oil and gas industries; Recent escalations in the Middle East, including the killing of Hezbollah and Hamas leaders, have heightened fears of a broader regional conflict; Venezuelan President Nicolas Maduro's victory in the election could influence Venezuela's oil production and the global oil supply; Geopolitical risks in the Middle East and supply concerns from Venezuela could influence market dynamics; OPEC+ may reevaluate production cuts if Brent crude prices remain weak; BMI expects the current weaknesses in the oil market to persist due to weak market conditions for demand; BMI's near-term view is that oil prices are set to rebound from the current levels, closer to the US$80 per barrel level; There is a growing expectation of a supply surplus later this year and into 2025 if OPEC+ countries proceed with their plan to start unwinding some of their voluntary cuts; Recent increases in fuel and crude stocks indicate that demand is failing to keep pace with supply. #OilMarket #Volatility #SupplyDisruptions #MiddleEast #UsPresidentialElection #Venezuela #Opec+ https://theedgemalaysia.com/node/721983