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22/07/24
78
Crude Prices Down as Investors Look at Weak Fundamentals
On Monday, crude oil prices drooped for the second straight session to reach their lowest in more than a month, as investors focused on signs of weak demand and rising stockpiles.
Brent crude futures traded 47 cents, or 0.6% lower at $82.16 per barrel, the lowest since June 11. The U.S. West Texas Intermediate crude futures contract for delivery in August, which will expire on Monday, was 34 cents, or 0.4% lower at $79.79 per barrel, also a one-month low.
WTI futures for delivery in September were 45 cents lower at $78.19.
Traders took Biden’s decision not to seek a second term in their stride and ignored rising tensions in the Middle East to rather focus on soft demand, ample inventories, and a weak technical outlook.
According to Morgan Stanley analysts, the oil market is visibly tight at the moment, but will likely reach a balance by Q4 2024 and a surplus by 2025, pulling Brent prices down to the mid-to-high $70s range next year.
On Sunday, U.S. President Joe Biden stepped down from his re-election campaign and endorsed Vice President Kamala Harris as the Democrat who should run in his place.
Energy policy will likely be a key debating point between Trump and Harris.
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