Oil prices stabilized on Thursday after falling over 1% the previous day, influenced by a build in U.S. gasoline and diesel inventories and Saudi Arabia's July price cuts for Asian crude buyers. Geopolitical tensions in the Middle East and Canadian wildfires provide some price support, but an oversupplied market is anticipated in the second half of the year due to expected OPEC+ production hikes.
Oil prices steady after U.S. stockpile build, Saudi Arabia price cuts for Asia
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Oil prices stabilized on Thursday after falling over 1% the previous day, influenced by a build in U.S. gasoline and diesel inventories and Saudi Arabia's July price cuts for Asian crude buyers. Geopolitical tensions in the Middle East and Canadian wildfires provide some price support, but an oversupplied market is anticipated in the second half of the year due to expected OPEC+ production hikes.
Trending- 1 Weekend (past): OPEC+ moves to increase output by 411,000 barrels per day for July
- 2 Wednesday: Oil prices closed lower; official data showed U.S. gasoline and distillate stockpiles grew; U.S. services sector contracted in May; U.S. President Donald Trump commented on China’s Xi Jinping
- 3 Thursday: Oil prices steadied
- 4 July: Saudi Arabia’s price cuts for Asian crude buyers take effect
- 5 June to end of October: OPEC’s de facto leader Saudi Arabia potentially unwinding 2.2 million barrels per day
- 6 Second half of the year: Potentially over-supplied market with expected OPEC+ production hikes
- Oil price volatility in global markets
- Potential oversupply in the oil market in the second half of the year
- Influence on U.S. Federal Reserve's interest rate policy
What: Oil prices steadied after falling due to increased U.S. gasoline and diesel stockpiles and Saudi Arabia's price cuts for Asian crude buyers.
When: Thursday (oil prices steady); Wednesday (previous day's fall, U.S. services sector data, Trump's comments); July (Saudi price cuts, OPEC+ production hikes); second half of the year (potentially over-supplied market).
Where: U.S. (stockpiles, services sector); Saudi Arabia (price cuts); Asia (crude buyers); Middle East (geopolitical tensions); Canada (wildfires).
Why: Weak demand in the U.S. (reflected in stockpile build), Saudi Arabia's strategy to regain market share and punish over-producers, and OPEC+ decision to increase output. Geopolitical tensions and Canadian wildfires provide counter-support.
How: Market forces reacting to supply and demand data, OPEC+ decisions, and geopolitical events.