Lagos — Crude oil futures continued to find support in the supply disruptions in the Middle East. Recent drone strikes on oilfields in Iraq’s Kurdistan region have affected production, removing an estimated 140,000 to 150,000 barrels per day from global supply. The market remains sensitive to geopolitical risks, with price movements contingent on the pace of production recovery.
On the demand side, global consumption averaged 105.2 million barrels per day in early July, up year-on-year. Seasonal factors, including increased summer travel in the Northern Hemisphere and the higher refinery activity in Asia, have reinforced demand. However, this seasonal strength could wane as summer ends, potentially limiting further price appreciation.
Looking ahead, delays in finalising U.S. tariff decisions could affect demand while anticipated production increases from OPEC+ as summer demand fades could weigh on prices. Traders could continue to monitor any economic data and any impact on oil demand.
*Li Xing Financial Markets Strategist Consultant to Exness
This article was originally posted at sweetcrudereports.com
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