FX.co ★ Oil Heads for First Monthly Drop in Four

WTI crude oil futures declined to approximately $64 per barrel on Friday, marking the first monthly drop in four months, despite being set for a second consecutive weekly increase. The oil market has been underpinned by geopolitical tensions and supply apprehensions. Traders are closely watching Ukrainian drone assaults on Russian export facilities and any potential comments from President Trump regarding tighter sanctions. Nonetheless, prices have softened due to expectations of a decline in US fuel consumption, as the summer driving season concludes with Labor Day. This is coupled with worries about a global supply surplus, following recent forecasts from the International Energy Agency (IEA) indicating that supply will surpass demand in the forthcoming quarters, and due to OPEC+'s efforts to reinstate dormant capacity. Additionally, investors are observing India's response to US pressure concerning Russian oil imports. Despite this, analysts anticipate an increase in shipments in September, leaving the market's outlook in a state of uncertainty.