Oil continues to demonstrate a sharp surge, achieving its largest monthly gain in over a year due to market tightening. This growth is linked to record demand for crude oil, which has resulted in a market deficit. The reduction in supplies from Saudi Arabia and other OPEC+ countries supports this trend, improving the prospects for crude oil.
On the global exchanges, prices of West Texas Intermediate (WTI) remain above $80 per barrel after a five-week increase, reaching the highest level since April. Analysts at Goldman Sachs Group Inc. confirm the forecast of Brent prices reaching $86 per barrel by December, boosting investor optimism.
Expectations of the Federal Reserve System preparing to conclude its monetary policy tightening cycle also impact the oil market, leading to dollar weakening. This provides additional incentives for oil price growth.
Amidst these positive trends, there are also some potential risks. The Chinese manufacturing sector has declined for the fourth consecutive month, which may necessitate measures to stimulate consumption and maintain stable demand.
Speculators, observing the surging oil prices, are increasing their bullish bets in the energy complex, further influencing price growth.
In conclusion, the overall idea is that the oil market is becoming increasingly stringent, with oil demand being supported by OPEC+ production cuts and dollar weakening. However, macroeconomic data and the global market situation may influence the future dynamics of oil prices.
