On Tuesday, crude oil prices declined ahead of the American Petroleum Institute data, highlighting the summer fuel demand.
West Texas Intermediate crude oil futures for August delivery dropped by -1.11% to $68.60 per barrel. Likewise, Brent oil contracts slipped by -1.04% to $73.58 a barrel on June 27’s Asian afternoon session.
US storage data from the API will be released on Tuesday, while government data will be due on Wednesday.
Last week, oil fell by 3.60% due to concerns about further interest rate hikes from the US Federal Reserve. As a result, it could negatively affect demand while economic recovery in China frustrates investors.
According to experts, Petronas, a Malaysian energy company, expects increased domestic oil and gas output. It would equate to two million barrels of fuel per day in 2024.
They added that Malaysia has a commitment as they observed that they need some exploration to fill refineries.
In addition, around 60.00% to 70.00% of its production is natural fuel which is seen to be maintained.
Furthermore, Guyana, an oil producer, refused to join the Organization of the Petroleum Exporting Countries. The South American country looks forward to increasing production and gathering new operators.
It has been formally invited to join OPEC. However, they did not show interest.
US Data Shed Light to Lower Oil Prices
Oil prices dropped as data showed the appetite for fuel in the US for its driving season. Benchmark price structures indicated the retreatment of bulls.
Brent and WTI were trading broadly within a $10.00 barrel range recorded since May.
Moreover, Brent is dealing with a six-month low. On the other hand, it is hovering near drops from March, showing a decrease in concern about supply.
In addition, the oil market ignored the conflict between Moscow and Russia, which was avoided on Saturday. Russian oil loadings remained on schedule.
Furthermore, demand in China would be based on how their economy would pick up in the second half. Analysts said that the Asian country will exert efforts to boost demand.
