Brent Crude oil prices experienced a downturn on Monday, trading at $US67.48, a 0.7 per cent decrease. This decline follows a period last week where prices remained relatively stable, fluctuating between $US67 and $US68 a barrel. The market is responding to a complex interplay of factors, primarily geopolitical instability and concerns regarding potential oversupply.
Recent Ukrainian drone attacks on two Russian refineries and Russia’s retaliatory actions have heightened tensions, diminishing hopes for an imminent ceasefire. ANZ noted that these geopolitical risks are keeping markets on edge, particularly concerning the flow of Russian oil. Weekly shipments from Russian ports have already dropped to a four-week low, adding to supply concerns. ANZ is one of Australia’s big four banks and provides a range of banking and financial products and services.
Adding to the downward pressure on prices is the anticipation of increased OPEC supply, which ANZ suggests could lead to a market surplus later in the year. Furthermore, a surge in oil exports from Brazil is also weighing on the market. According to Vortexa ship-tracking data, Brazilian oil exports rose to an average of 2.17 million barrels per day in August, up from 1.87 million barrels per day in July, with a notable increase in shipments to Asia.
