Crude Oil Retreats as Market Refocuses on Supply Surplus

Daily market analysis by Konstantinos Chrysikos, Head of Customer Relationship Management at Kudotrade

Crude oil prices slipped after a short-lived rebound, as markets shifted their attention back to weaker demand risks and the prospect of oversupply. With the US summer driving season drawing to a close, gasoline demand is expected to moderate, adding near-term pressure to energy markets.

On the supply side, headwinds persist. OPEC+ output has been gradually increasing in recent months, with another rise anticipated in September, while non-OPEC producers continue to expand global flows. Traders will closely watch OPEC’s next meeting for signals on production targets. Any pause or adjustment could offer some support to the market.

Meanwhile, investors are awaiting fresh US economic data, which could provide clearer insight into domestic demand trends. Attention will also turn to China’s PMI figures, a key gauge of industrial activity. Strong readings could signal resilient consumption and lend support to crude, while weaker numbers may reinforce demand concerns and weigh on prices.