Crude Prices Rise as Traders Anticipate Monthly OPEC and IEA Reports Later This Week

Crude oil prices increased on Monday, stabilizing after three consecutive weeks of losses. This rise comes ahead of upcoming monthly reports from OPEC and the International Energy Agency, as well as the latest Federal Reserve meeting.

As of 08:03 ET (12:03 GMT), West Texas Intermediate (WTI) futures were up 1.1% at $76.33 per barrel, while Brent crude rose 1.0% to $80.45 a barrel.

The crude market experienced its third consecutive weekly loss last week due to concerns surrounding the planned unwinding of production cuts by OPEC and its allies, collectively known as OPEC+, set to begin in October, which could increase global supply.

In a note to clients on Sunday, analysts from Goldman Sachs attributed the recent drop in Brent prices to a decrease in the “geopolitical risk premium” and changes in speculative positioning. They also indicated that renewed concerns about global oil demand, along with unexpected increases in inventories, contributed to this decline.

The analysts forecasted that Brent prices could recover to $86 per barrel in the third quarter, aided by strong consumer spending during the busy summer travel season. However, they expect Brent prices to remain within a range of $75 to $90 per barrel.

This week, traders will focus on OPEC’s monthly report due on Tuesday, which will provide insights into the organization’s outlook on annual oil demand. A similar report from the International Energy Agency is anticipated later in the week.