Oil prices held steady on Tuesday after falling for the previous two days, as investors remained cautious amid predictions of abundant supplies and poor demand, while ignoring the turmoil in the US presidential campaign. Brent crude futures for September increased 2 cents to $82.42 a barrel at 0320 GMT. West Texas Intermediate crude in the United States fell 2 cents to $78.38 a barrel in September.
Oil prices are now stable, but face problems due to an anticipated excess and insufficient demand. According to recent reports, oil prices are being weighed down by bad Chinese economic statistics and getting worse consumer mood in the United States. China’s manufacturing output has been disappointing, while consumer sentiment in the United States dropped to a seven-month low in June, reducing expectations for a demand surge during the northern hemisphere’s summer driving season. As a result, Brent crude prices are marginally lower, while US West Texas Intermediate (WTI) crude futures have also declined.
Furthermore, researchers estimate that oil prices will struggle until 2024 due to oversupply and slow demand growth. Despite potential short-term advantages, market confidence is insufficient to predict a persistent increase in prices. The United States is projected to keep expanding its oil production, adding to the surplus, and OPEC is finding it difficult to affect pricing while other countries raise up their output.
Deloitte’s forecasting for the oil and gas market in 2024 shows further volatility, with growing US output offsetting cuts by OPEC+ nations. This has kept prices consistent with late 2021 levels. The prognosis for natural gas remains stable, with large storage levels and an anticipated mild winter expected to keep prices from falling much.
Recent economic data from China, the world’s largest crude importer, highlight a difficult recovery. While holiday spending boosted retail sales, overall factory output has been dull. This, combined with a dramatic decline in US consumer sentiment to a seven-month low, has pushed oil prices lower. Brent and West Texas Intermediate (WTI) crude futures have both seen minor drops in response to these events.
