Please register and get access to full articles.
Welcome to our blog – a place to discuss and exchange thoughts and ideas about iX-7 Asset Management SA, the stock markets and all matters relating to wealth management.
OPEC+ continues its strategy of gradually increasing oil production, with another rise planned for September. This policy aims to stabilize the market but risks creating a supply surplus in the fourth quarter, putting downward pressure on oil prices. Furthermore, major energy agencies have recently adjusted their forecasts:
International Energy Agency (IEA): slight downward revision of global oil demand for the current year, reflecting signs of economic slowdown and geopolitical uncertainties.
U.S. Energy Information Administration (EIA): lowered estimates for growth in U.S. oil production, as a result of decreased drilling activity.
In the background, international trade tensions—especially related to fluctuating tariff policies implemented by the Trump administration—continue to foster a high level of uncertainty. These tensions weigh on global economic growth expectations, which directly impacts oil demand. This tense environment explains why oil prices are struggling to regain higher levels.
Currently, Brent crude is trading around $68.60 per barrel, and WTI near $66.60 per barrel.
Analysts maintain a cautious stance on the oil sector in the short term. They emphasize that the combination of rising supply from OPEC+, slightly declining global demand, and an uncertain geopolitical environment increases market volatility.
The general recommendation is to hold or wait for clearer supply-demand balance and a stabilization of trade tensions. Investors should closely monitor:
OPEC+ production decisions
IEA and EIA reports on demand and production adjustments
Developments in international trade and political tensions
These factors will be critical in shaping oil price trends in the coming months.
Knowledge is power.
