Oil Set for Monthly Loss as Glut Concerns, Geopolitics Dominate
Oil edged lower to head for a monthly loss, as investors weighed concerns about a looming glut along with geopolitical tensions, including US-led efforts to end the war in Ukraine.
West Texas Intermediate fell toward $64 a barrel, with the US benchmark more than 7% lower in August, while Brent posted a modest gain on Thursday. Oil prices have lost ground this month amid concerns that global supplies will run ahead of demand in the coming quarters, boosting stockpiles.
Traders are also focused on Ukraine, and crude supplies from OPEC+ member Russia. US President Donald Trump may release a statement on Moscow and Kyiv later Thursday local time, according to White House Press Secretary Karoline Leavitt. Earlier this week, Washington imposed a 50% levy on most Indian imports to punish the Asian country for buying Russian crude.
Crude’s decline in August is the first monthly drop since April, when commodity prices were hurt by a sharp escalation in President Trump’s trade war and concerns that energy consumption would suffer. The widespread worries about a surplus — which have been led by a forecast from the International Energy Agency — follow a campaign by OPEC+ to restore idled capacity.
Source: Bloomberg
