Iraq monitors global oil prices closely as markets react to new demand signals from the United States. Global crude benchmarks dropped slightly after surprising inventory data. Analysts now question future demand strength in the world’s largest oil consumer, and oil demand concerns are growing among market observers.
Brent crude prices fell by 24 cents, bringing the price to $68.87 per barrel. Similarly, West Texas Intermediate crude also dropped 24 cents, settling at $67.21 per barrel. Both benchmarks had posted gains earlier due to geopolitical worries and trade developments.
Oil demand in the United States appeared weaker than expected. The U.S. Energy Information Administration revealed a rise in crude inventories by 3.8 million barrels. Analysts had forecasted a drop of 1.8 million barrels. This mismatch sparked immediate concerns about real-time consumption.
Gasoline usage also declined to 8.6 million barrels per day. That figure unsettled energy traders during the peak summer driving season. Lower consumption figures suggest reduced travel or higher fuel efficiency, both of which reduce oil demand.
Oil demand concerns are growing as traders balance inventory data against geopolitical risks. Earlier this week, Iran suspended cooperation with the U.N. nuclear watchdog. That decision reignited fears of conflict, especially involving a key Middle East oil producer. Those tensions temporarily lifted prices before data pushed them down again.
Meanwhile, a trade agreement between the United States and Vietnam added some optimism. The deal included 20% tariffs on many Vietnamese exports, which could strengthen trade stability. Analysts believe that stronger international trade could support future oil consumption.
Still, oil demand concerns are growing as markets await more economic signals. A key U.S. employment report could influence expectations for interest rate cuts. If the Federal Reserve lowers rates, it may boost economic activity. More growth often leads to greater oil demand.
A private payroll report showed job losses for the first time in two years. However, analysts cautioned against linking this directly with official labor statistics. Investors remain cautious but alert for signs of broader market movement.
Oil demand concerns are growing, especially as Iraq and other producers assess future price trends. The global oil market remains sensitive to both economic and political factors. Iraq continues to observe closely while preparing for shifts in supply and demand.