Brent crude oil was priced at around $84.9/barrel in the trading session on July 31 (local time) while WTI crude oil was at $80.41/barrel.
Previously, Brent and WTI oil prices closed on July 28 at their highest levels since April, having increased for five consecutive weeks due to tightening global oil supplies and expectations that the US will end interest rate hikes, supporting oil prices.
Oil prices rose to near three-month highs on July 31. Photo: Reuters
Saudi Arabia is expected to extend its voluntary oil production cut of 1 million barrels per day until September, analysts said, according to Reuters news agency.
"Oil prices have rallied 18% since mid-June as record demand and Saudi Arabia's supply cuts have pushed the deficit back into the red, amid a resurgence of pessimism about oil demand growth," analysts at Goldman Sachs said in a July 30 report. "We still expect Saudi Arabia's additional 1 million barrels per day cut to be extended through September and a 500,000 barrels per day reduction from October."
Goldman Sachs maintained its Brent crude price forecast at $86 a barrel in December and expects prices to rise to $93 a barrel in the second quarter of 2024.
Goldman Sachs estimates global oil demand rose to a record 102.8 million barrels per day (bpd) in July and revised up its 2023 demand growth by about 550,000 bpd based on estimates of stronger economic growth in India and the United States, offsetting lower consumption in China.
More sustainable demand is leading to a larger deficit in the second half of 2023 than expected, averaging 1.8 million barrels per day, and a modest deficit of 0.6 million barrels per day in 2024, according to Goldman Sachs.
Exxon Mobil CEO Darren Woods said the company expects record oil demand this year and next, which could help boost energy prices in the second half of the year.
In the US, energy companies in July reduced the number of oil rigs for the eighth consecutive month to 529.
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