Weakness in oil price persists

FXStreet (Łódź) - Independent Analyst Malcolm Graham-Wood observes that the price of oil remains subdued on Tuesday, especially in the case of Brent crude which continued its decline falling below $104, lower than the market expectations of $104.40-105.40.

Key quotes

"There is no doubt that supply is trumping geopolitics at the moment and for those looking for a breakout, such as at IG where I talked last week, the downside has the upper hand."

"Market fundamentals are in the IEA monthly report out this morning, in July, Opec production was at a five month high of 30.44m b/d and Saudi Arabia was up at 10m b/d so even with high summer domestic demand it was filling those gaps."

"The Iraqi Oil Ministry announced that exports are unchanged and forecast August numbers to be at 2.5m b/d."

"Worse news was in the IEA demand numbers, particularly for next year as they followed the Opec research by calling them down despite still having positive GDP forecasts which is not a given."