- Oil trades lower amid a rising dollar, and as the market weighs the extent of supply tightness
- September ’23 WTI lost 62c this morning to trade around $81.16/Bbl
- Equities trade modestly higher, and the US dollar strengthened relative to its recent lows weighing on dollar-denominated commodities
- WTI gained nearly $11/Bbl or 16% in July amid signs of supply tightening and expectations that the West can avoid a recession as inflation cools
- There's speculation that Friday's OPEC+ meeting is likely to extend Saudi Arabia's voluntary cuts into September
- Additionally, China unveiled new policy guidelines on Monday to bolster economic recovery after manufacturing fell for a fourth straight month
- India's Russian oil imports dip further, expected to continue decline (Bloomberg)
- Russian oil imports by India fell from 2.11 MMBbl/d to 2.09 MMBbl/d in July, with a further decline expected in August due to Russia's planned export cutbacks
- However, a rebound, potentially reaching 2.2 MMBbl/d, is forecasted from October despite an expected August low of 1.6 MMBbl/d, according to Kpler
- BP CEO sees oil prices to rise on resilient demand and OPEC+ cuts (Bloomberg)
- BP anticipates a bullish outlook for oil prices due to growing demand and OPEC+'s production cuts
- CEO Bernard Looney expects crude demand growth of over 2 MMBbl/d in 2023
- He added that despite concerns about China’s growth and economic concerns, “demand for oil has been incredibly resilient”