Global oil prices experienced a slight uptick on Tuesday, driven by positive market fundamentals and supply expectations. The Organization of the Petroleum Exporting Countries (OPEC) released a report indicating robust demand and attributing recent price fluctuations to speculators.
Brent crude futures saw a modest increase of 0.28%, reaching $82.75 a barrel, while U.S. WTI crude futures climbed 0.27% to $78.47 a barrel by 0722 GMT.
Analysts from ING noted, “Following the heavy sell-off in the market over the last three weeks, oil has managed to find some support. While fundamentals may not be as bullish as initially thought, they are still supportive, with the market likely to be in deficit for the remainder of this year.” They added that a potential surplus early next year could be mitigated if Saudi Arabia continues its voluntary supply cuts.
In response to concerns over potential disruptions in oil supplies, particularly with the U.S. crackdown on Russian oil exports, the U.S. Treasury Department has taken significant steps. Notices have been sent to ship management companies seeking information on 100 vessels suspected of violating Western sanctions on Russian oil.
The U.S. energy department plans to purchase 1.2 million barrels of oil to replenish the Strategic Petroleum Reserve, aiming to buoy demand after last year’s significant sell-off from the stockpile.
However, discussions in Iraq regarding the resumption of oil flows from a key pipeline may impact market fundamentals. Iraq’s oil minister expects to reach an agreement with the Kurdistan Regional Government and foreign oil companies to resume oil production from the Kurdish region’s oilfields and restart northern oil exports through the Iraq-Turkey pipeline.
Key upcoming events influencing oil prices include the International Energy Agency’s monthly oil market report, U.S. inflation data, and the U.S. producer price index data. Additionally, factors such as the APEC summit’s impact on Sino-U.S. relations and potential further interest rate cuts by China could play a role in supporting oil prices, according to analysts.