Energy demand typically surges in the summer months on increased travel, with a strong U.S. economic engine supporting the overall market. However, the fall months are typically a weak period for crude oil, which typically sees a dip in consumption and a subsequent fall in prices, the Wall Street Journal reported.
Analysts further warned that trade tensions and weak global growth could also hit oil demand while further support the U.S. dollar, which would add additional pressure on commodity prices – USD-denominated commodities like oil will be more expensive for overseas buyers.
Related: A Mega-Bullish Oil Forecast
“The world oil price we believe is going to be closer to $80 for the rest of the year and particularly in November and December for Brent, and maybe even a little bit more upside if the handcuffs on Iran are tightened just a bit and Libya slips into more chaos,” said Tom Kloza, co-founder of the Oil Price Information Service, in an interview with CNBC.
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