The OPEC Reference Basket (ORB) averaged $42.68/barrel in July, representing the first decline in five months, OPEC’s latest monthly report showed recently.
Lower-than-expected demand, high refined product stocks, and rising crude supply were the factors behind the $3.16 drop, said OPEC’s report for August.
Bearish speculative activities also weighed on oil prices. The ORB fell by 32.6% year-on-year, the Organisation of the Petroleum Exporting Countries (OPEC) said in the report. said.
ICE Brent ended down $3.39 at $46.53/b, while Nymex WTI fell $4.05 to $44.80/b.
This is amid lower-than-predicted demand, high refined product stocks during the peak summer driving season and rising crude supply, which have all significantly exerted pressure over the month, the report noted.
“After a significant recovery for five consecutive months from its lowest value in years, the ORB slipped nearly 7% in July, falling against a backdrop of less-than-anticipated demand, high stocks, particularly of refined products, and rising supply. Hedge funds have also turned more negative, contributing to further pressure on oil prices,” the report said.
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