Crude oil and gasoline prices are down today, with WTI crude falling to a 1-week low. Concerns about weakening energy demand after the US Jul ISM services index unexpectedly declined are weighing on prices. OPEC+ raising crude production levels is stoking fears of a global supply glut.

The US Jul ISM services index fell -0.7 to 50.1, weaker than expected, impacting crude prices. The Eurozone Jul S&P composite PMI was revised downward to 50.9. Weak global economic news is bearish for energy demand and crude prices.

OPEC+ endorsed an additional 547,000 bpd increase in crude production for September 1, aiming to reverse 2-year-long production cuts. The International Energy Agency warns of a crude surplus by Q4-2025. OPEC July crude production fell -20,000 bpd to 28.31 million bpd.

President Trump’s threat of new tariffs on countries buying Russian energy if a ceasefire with Ukraine is not reached by Friday is supporting crude prices. JPMorgan Chase warns of potential supply shock from triple-digit tariffs on Russian oil.

The European Union approves fresh sanctions on Russian oil due to aggression against Ukraine, including cutting off more Russian banks from SWIFT and sanctioning Russian petroleum refined in other countries. A large India oil refinery part-owned by Russia’s Rosneft PJSC is blacklisted.

Crude oil stored on stationary tankers fell by -15% w/w to 79.12 million bbl, bullish for oil prices. US EIA report shows crude inventories below 5-year average, while US oil rigs decreased to a new 3.75-year low of 410 rigs. Baker Hughes reports a sharp decline in US oil rigs over the past 2.5 years.

Read more at Yahoo Finance: Crude Prices Retreat on Energy Demand Concerns