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Weekly Crude Oil Prices Forecast July 29, 2023

Weekly Oil Prices Forecast and Technical Analysis

As the Brent crude oil price was analyzed and predicted last week by Rumays specialists group, the price could break the downward trend line and cross 82 USD and move towards the range of 88 USD.

Today, the Brent crude oil price is 84.6 USD, and it is expected to reach the range of 86 to 88 USD in the coming week with increasing demand.

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Saudi Arabia Likely To Extend Oil Production Cuts

Saudi Arabia is expected to prolong its voluntary 1 million-barrel oil supply cut into September as it seeks to support the rebound in oil prices. The top OPEC producer introduced the additional cutback this month in a bid to support higher oil prices amid faltering demand. Six participants in a Bloomberg survey have predicted the Saudis will taper off their extra cut by restoring 250,000-500,000 barrels a day of halted production in September.

“There’s ample evidence for Saudi Arabia to start unwinding the cuts in September. The market is screaming out for these barrels, and refiners are scrambling to get hold of them,”James Davis, director of short-term global oil services at consultants FGE, has told Bloomberg

Nevertheless, oil markets are expected to gradually tighten, which should boost prices as the months roll on. The International Energy Agency(IEA) in Paris has predicted an oil shortage of about 1.7 million barrels a day during the second half of the year. Commodity experts at Standard Chartered have predicted that global oil markets will register a supply deficit of 2.81 million barrels per day in August; 2.43mb/d in September and more than 2mb/d in November and December. The analysts have also projected that global inventories will fall by 310mb by end-2023 and another 94mb in the first quarter of 2024 thus pushing oil prices higher. According to the experts, Brent prices will climb to $93/bbl in the fourth quarter.

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Weekly Crude Oil Prices Forecast July 29, 2023