WTI crude futures traded near $79 per barrel on Thursday, attempting to rebound after experiencing three consecutive sessions of losses as investors balance the supply and demand dynamics in the oil market. On the supply side, Iran’s oil minister said the country’s oil output will reach 3.4 million barrels per day by the end of September despite US sanctions. Additionally, US authorities are reportedly considering a proposal to ease sanctions on Venezuela’s oil sector. The US oil benchmark reached a nine-month high of $84 on August 9, driven by supply cuts implemented by Saudi Arabia and Russia. However, since then, it has fallen by nearly 6%, influenced by a deteriorating economic situation in China, indications that US interest rates might need to remain elevated for an extended period, and disappointing economic data from Europe. Meanwhile, official data showed that US crude inventories fell by 6.1 million barrels last week, much larger than forecasts for a 2.8 million barrel drop.
