Tight Inventories Keep Crude Prices Supported Through August
OPEC+ has increased oil production by an additional 188,000 barrels per day (bpd), but tight global inventories and geopolitical instability are expected to keep crude prices supported through August.
Tamas Varga, analyst at PVM Oil Associates, notes that the oil market remains dominated by risks stemming from conflicts in the Middle East and Ukraine, trade disputes, and inflation.
Disruptions affecting crude and refined product markets continue, including attacks on energy infrastructure, constrained exports from Kazakhstan, and shipping risks in key areas such as the Persian Gulf, Red Sea, and Suez Canal.
Varga points out that despite recent improvements, U.S. distillate inventories remain significantly below year-ago levels and the five-year seasonal average, with similar inventory deficits persisting in Northwest Europe and Singapore.