Brent Crude Oil Prices

Brent prices averaged USD 85.2 per barrel in August, up 6.3% from July’s price but 12.8% lower year on year. Meanwhile, on 31 August, Brent traded at USD 86.9 per barrel, 1.5% higher month on month.

The 6.3% rise in the spot price in August was the second highest since the war in Ukraine began, after that seen in July. The rise comes after the crude market fell into deficit in July. Demand likely continued to be stoked by seasonal factors and rising services activity. In contrast, supply likely continued to be hit by lower output from Russia and Saudi Arabia, who pledged in July to cut output in August. The two countries’ announcements in August of further cuts in September likely further stoked the bull rally. However, the rally was likely limited by weak economic data for China and the Euro area.