- WTI price falls as OPEC+ ramped up Oil output.
- Oil demand expectations weaken due to the end of the US summer driving season.
- Ukrainian President Zelenskiy pledged to carry out additional strikes deep inside Russia.
West Texas Intermediate (WTI) Oil price extends its losses for the second successive session, trading around $63.50 per troy ounce during the Asian hours on Monday. Crude Oil prices decline due to potential for oversupply concerns and weaker demand prospects.
Traders are looking ahead to the OPEC+, Organization of the Petroleum Exporting Countries and its allies, meeting later this week, where accelerated Oil output increases are boosting the global supply outlook. However, much of this additional supply has yet to reach the United States (US), the world’s largest fuel market, where the end of the summer driving season is already dampening demand expectations.
However, the downside of the Oil prices could be restrained due to increased geopolitical risk premiums, driven by the ongoing Russia-Ukraine war and the potential for tighter US sanctions that could curb global flows.
Ukrainian President Volodymyr Zelenskiy vowed on Sunday to launch further strikes deep inside Russia in response to Russian drone attacks on power facilities in northern and southern Ukraine. In recent weeks, both sides have stepped up airstrikes, focusing on energy infrastructure and disrupting Russian oil exports, per Reuters.
Traders are weighing whether India will bow to US pressure to halt Russian Oil imports, following Washington’s imposition of secondary tariffs on New Delhi last week. Meanwhile, the upcoming SCO summit is in focus, with Chinese President Xi, Russian President Putin, and Indian Prime Minister Modi all expected to attend.
