Oil prices expected to reach $65 per barrel by October

Global crude oil prices are projected to continue their downward trend, with Brent crude falling 1.91% to $73.83 per barrel and WTI dropping 2.03% to $70.46 per barrel late yesterday. The market anticipates prices could reach as low as $65 per barrel by October.

This forecast is largely attributed to expectations of an oversupplied market. Factors contributing to this include the easing of tensions in the Middle East and the potential reopening of the Strait of Hormuz, a critical chokepoint for oil transport.

Economic analyst Prof. Emeritus Dr. Barjoyai Bardai explained that current price declines are primarily supply-driven. He estimates that approximately 70% of the price movement stems from supply factors, with demand accounting for the remaining 30%. This indicates that shifts in production and availability are having a more significant impact on oil prices than changes in consumption.