Markets

Persistent concerns about the economic recovery and oil demand in China as well as the ongoing progress in negotiations for a ceasefire in Gaza kept the pressure on futures prices.

Concerns about demand in China and hopes for a ceasefire in Gaza outweighed a crude stockdraw in the US.

Price pressure came early in the week after Hurricane Beryl largely spared upstream production capacity and concerns arose about the storm taking a bite out of demand in the areas that it impacted.

Even though supply-side concerns related to Hurricane Beryl dissipated early in the week and the risk premium associated with geopolitical tensions in the Middle East faded somewhat later in the week amid ceasefire negotiations, futures prices for benchmark crudes hit fresh multi-week highs.

Concerns about potential supply disruptions related to the wars in the Middle East and Europe outweighed news of weak supply/demand balances.

Demand optimism from the previous week continued while geopolitical issues in Europe and the Middle East prompted concerns about potential supply disruptions.

Upbeat forecasts for demand growth in 2024 and 2025 bolstered futures prices.

OPEC+'s decision to allow some members to begin unwinding production cuts beginning in Oct. as well as mixed views on when the US Federal Reserve may begin cutting interest rates pressured futures prices.

Traders were focused on lackluster demand in the US throughout much of the week.

Concerns about stubborn inflation and high interest rates in the US held the attention of traders throughout most of the period.