Market Digests Prospects for Increased Oil Supply International oil prices fell on August 31

As the market continued to digest the prospect of increased oil supply, the price of international crude oil futures fell significantly in the overnight market, narrowed the decline in the morning of the 31st, continued to fall in the afternoon, and fell at the close
.

Light crude futures for October delivery fell $2.
09, or 2.
28%,
to settle at $89.
55 a barrel on the New York Mercantile Exchange by the close of the day.
London Brent crude futures for October delivery fell $2.
82, or 2.
84%, to settle at $96.
49 a barrel
.

Phil Flynn, a senior market analyst at Price Futures Group, said on the 31st that reports that the United States was close to reaching an agreement with Iran on the nuclear issue caused oil prices to fall
sharply on the 30th.

Flynn said that if the United States returns to the 2015 Iran nuclear deal, it will change the crude oil market in the short term, and the market believes that Iran's average crude oil supply can increase by 1 million barrels per day to 1.
5 million barrels
.
Once the two sides reach an agreement, there will be a deep drop in oil prices, followed by a rebound, and there will be a solid bottom in oil prices
.
For now, the decline in oil prices could allow oil prices to test further the $85 per barrel level
.

According to reports, the report released by the Joint Technical Committee of OPEC and non-OPEC producers on the 31st predicts that the oil market oversupply will increase from the current 600,000 b/d to 1.
4 million b/d
in November.
The Joint Technical Committee also expects the global oil market oversupply to be 900,000 b/d in 2022, 100,000 b/d
higher than previously expected.

PVM Tongren analyst Tamas Varga said China's manufacturing purchasing managers' index released by the China Federation of Logistics and Purchasing for August was 49.
4%, and the service sector prosperity index was weaker than expected
.
In addition, both the Fed and the European Central Bank are expected to raise interest rates sharply in September, possibly by 75 basis points
each.
These factors have made stock market investors risk-averse, and the oil market is currently the same
.

According to data released by the US Energy Information Administration on the 31st, US commercial crude oil inventories last week were 418.
3 million barrels, down 3.
3 million barrels
from the previous month.
Over the same period, U.
S.
motor gasoline inventories fell by 1.
2 million barrels month-on-month, distillate inventories increased by 100,000 barrels month-on-month, and propane and propylene inventories increased by 4.
2 million barrels
month-on-month.
U.
S.
commercial oil inventories, which include commercial crude, refined products, propane and propylene, fell by 200,000 barrels
last week from the previous month.

The data also showed that U.
S.
refineries processed an average of 16.
2 million barrels per day last week, down 17,000 barrels month-on-month; the average operating rate of U.
S.
refineries last week was 92.
7%, down from 93.
8% the previous week; U.
S.
net crude imports averaged 1.
989 million barrels per day last week, down 05,000 barrels
month-on-month.

It is worth noting that commercial crude oil inventories in the Cushing region of the United States were 25.
3 million barrels last week, down 500,000 barrels month-on-month; U.
S.
strategic crude reserves were 449.
9 million barrels last week, down 3.
067 million barrels month-on-month, and U.
S.
crude oil production averaged 12.
1 million barrels per day last week, up 100,000 barrels
month-on-month.

Data released by the American Petroleum Institute on the 30th showed that last week's US commercial crude oil inventories increased by 593,000 barrels month-on-month, while gasoline and distillate inventories fell by 3.
414 million barrels and 1.
726 million barrels
, respectively.