Oil is on course to have its best month in almost a year

31 Jul 2023 , 10:03 AM

On Monday, oil prices were hovering at three-month highs, poised to notch their biggest monthly gains in almost a year on expectations that Saudi Arabia would prolong voluntary output cuts into September, tightening global supply.

Brent crude futures were down 9 cents to $84.90 a barrel, while West Texas Intermediate crude was down 17 cents to $80.41 a barrel.

The Brent contract for September will expire later on Monday. The more active October contract was down 18 cents to $84.23 per barrel. Both are on course to have their best monthly increases since January 2022 by the end of July.

The bank maintained its Brent projection for December at $86 per barrel, with prices expected to grow to $93 in the second quarter of 2024. Exxon Mobil CEO Darren Woods stated that the business expects record oil consumption this year and next year, which may contribute to higher energy prices in the second half of the year.

In the United States, energy companies lowered the number of oil rigs for the eighth consecutive month in July, by one to 529, according to Baker Hughes’ weekly report on Friday.

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