Crude oil prices fell sharply on Friday, with August WTI crude closing down 2.69 dollars, or 3.74 percent, at a fresh four-month low. An acceleration of oil tanker traffic out of the Persian Gulf is boosting global supplies, with Bloomberg calculations showing crude exports from the region recovered to at least 75 percent of pre-war levels, totaling 13 million barrels over the three days through Wednesday. Saudi Arabian ships heading to the Ras Tanura terminal signal the kingdom is set to restart exports from within the Persian Gulf for the first time since March. Additional pressure came from Iraq's warning that it might quit OPEC if it does not receive a higher output quota, and the IEA's forecast that world oil consumption will decline by 1.1 million barrels per day this year, a larger drop than previously estimated. Goldman Sachs cut its Brent crude price forecast to 80 dollars a barrel in the fourth quarter and expects Persian Gulf exports to return to pre-war levels by the end of July, one month earlier than previously expected.
Same supply increase; Goldman Sachs cut Brent forecast to $80/bbl; Persian Gulf exports expected to return to pre-war levels sooner.
Oil tanker traffic out of Persian Gulf boosts global supplies; Saudi exports restart; Iraq may quit OPEC for higher quota.