24-Aug-2024 13:05

WTI Crude Oil futures fell under $73 per barrel ' testing seven month lows amid persistent demand worries. Prices edged up thereafter to approach near $75 per barrel amid broad US dollar weakness. However, upside looks capped amid rising US output. The US Energy Information Administration or EIA stated in a latest update that crude oil production in the United States will grow to an average of 13.7 million barrels per day (b/d) and marketed natural gas production will grow to an average of 114.3 billion cubic feet per day (Bcf/d) in 2025. Most of the forecast growth in oil and natural gas production comes from the Permian region of western Texas and eastern New Mexico. There is a possibility that the stress in US labour markets will have a palpable impact on real demand conditions. Housing market is also under strain. New residential construction in the US saw a steep drop in the month of July, according to a report released by the Commerce Department. The report said housing starts plunged by 6.8 percent to an annual rate of 1.238 million in July after jumping by 1.1 percent to a revised rate of 1.329 million in June. With the sharp pullback, housing starts tumbled to their lowest level since hitting an annual rate of 1.053 million in May 2020.

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