As of Tuesday, August WTI crude oil (CLQ26) closed at $73.00, down $0.65 (-0.88%), marking a 3.5-month low, while August RBOB gasoline (RBQ26) fell $0.0211 (-0.73%). The decline in energy prices is attributed to a stronger U.S. dollar index, which reached a 13-month high, and the resumption of crude supplies through the reopened Strait of Hormuz. This development is expected to ease global oil supply concerns, impacting prices negatively.
The International Energy Agency (IEA) announced a projected decline in global oil consumption by 1.1 million barrels per day (bpd) for this year, which is significantly more than the earlier estimate of 420,000 bpd. Goldman Sachs also revised its Brent crude price forecast for Q4 to $80 per barrel, down from $90. Furthermore, U.S. crude production is forecast to rise to 13.72 million bpd by 2026, further contributing to bearish market sentiments.
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