Oil prices holding above $80 on demand uncertainty

Crude oil futures (CL=F, BZ=F) are holding above $80 per barrel on Tuesday ahead of summer energy demands. Yahoo Finance Senior Business Reporter Ines Ferré details the factors that are pushing oil prices higher in this session.

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This post was written by Luke Carberry Mogan.

Video transcript

Oil prices are holding near their highest level this month as traders continue to weigh demand uncertainty.

Yahoo finances and, as has been watching oil prices so far this year for us and what do you got?

Yeah, Madison.

And we saw crude advancing this month after a quarterly drop, taking a look back at the beginning of June.

Oil initially had dropped after OPEC plus that it would extend its production cuts, but the voluntary ones would start to be phased out starting in October.

Then the oil alliance kind of hinted, well, they could reverse that decision.

Part of the recent move up has to do with demand expectations this summer.

Morgan recently citing a summer inventory draw which could move Brent back into the high eighties to nineties range interest rates starting to ease in other parts of the world.

Here in the US, one rate cut is expected this year that could be bullish for oil and this expectation that if prices go down into the seventies, then the US is going to aggressively start filling up its PR.

China will take the opportunity to buy more oil, but if it gets too high, then again I can go ahead and introduce more barrels into the market in the fourth quarter as it doesn't want to lose really any more.

Market share to the US and others, as it has Prices are expected, though, to taper off in the fourth quarter and going into 2025.

Analysts are expecting the balances are going to soften dramatically, with Brent crude falling.