Oil markets took a breather this week as the International Energy Agency (IEA) forecast a supply surplus amid cooling demand, sending prices downward ahead of a high-stakes meeting between US and Russian leaders. Brent crude fell 0.7% to $65.67/barrel, while US crude dropped to $62.64 – continuing Tuesday’s slide. 📉
The IEA’s Wednesday report revealed a double whammy: OPEC+’s increased production plans could flood markets, while major economies like the US and Europe show weaker-than-expected energy appetites. But don’t hit the panic button yet – OPEC’s latest monthly report hints at tighter markets in 2024 due to slower US shale growth. 🔄
All eyes now turn to Friday’s Alaska meeting between US and Russian leaders, where talks about resolving the Russia-Ukraine conflict could impact global oil flows. Analysts like PVM’s Tamas Varga suggest prices dipped partly because markets expect no new sanctions on Russian oil exports. 🤝
Meanwhile, US crude inventories grew by 1.52 million barrels last week, though gasoline demand showed signs of life. The EIA predicts Brent could average under $60 by Q4 – levels not seen since 2020’s pandemic slump. 💡
Bottom line: With supply growth outpacing demand and geopolitical talks looming, energy markets are bracing for more turbulence. Stay tuned! ⚡
