On August 22, the Saudi Energy Minister Prince Abdulaziz bin Salman hinted at a production cut as soon as the September 5 OPEC Plus ministerial meeting.

The weakening global economic outlook continued to weigh on market sentiment. In contrast, the supply outlook improved on the prospect of higher supply in the coming months, even as signs of disappointing Chinese economic activity and economic weakness clouded much of Europe.

Crude oil prices fell driven by weaker-than-expected Chinese manufacturing data, a rebound in Libyan production to 1.2 million barrels per day and further bearish macroeconomic news.

A high commodity price environment over the last quarter, coupled with operators remaining disciplined with their spending, has resulted in massive profits for major oil producers.

Oil market sentiment shifted from a focus on supply concerns to fears of a global recession resulting in a sharp sell-off.

Despite the sell-off, physical crude markets have remained tight and will likely remain so in August.

US president Biden’s visit to Riyadh has ended successfully on all fronts, with various agreements signed and sealed.

Crude oil prices have been running between $100 and $130 a barrel amid concerns around the political uprising in Eastern Europe.

The market puts the premium for war at $30 a barrel, which means a price range between $70 and $100 a barrel reflects the fundamentals.

All eyes are on US President Joe Biden’s visit to the Middle East, as the movers and shakers in the oil market are waiting for the outcome of the visit and its likely impact on oil prices.

Crude prices are still on the rise, as investors remain focused on global supply dynamics in Eastern Europe and North Africa.

Concerns of supply shortage were not outweighed by possible demand pressures caused by a rise in COVID-19 cases in China and more interest rate hikes.