Oil prices dipped on Thursday, pressured by expectations of reduced U.S. fuel demand as the summer travel season ends and the resumption of Russian oil supplies to Hungary and Slovakia via the Druzhba pipeline. Brent crude futures dropped 46 cents (0.7%) to $67.59 by midday ET, while U.S. West Texas Intermediate (WTI) crude fell 57 cents (0.9%) to $63.58 a barrel.
The U.S. Labor Day weekend marks the close of the summer driving season, with forecasts predicting lower gasoline demand. Meanwhile, OPEC plans to increase September output by 547,000 barrels per day, likely causing inventories to rise, according to Ritterbusch and Associates. This supply-demand imbalance is expected to weigh on energy prices as refiners switch to cheaper winter-grade fuel.
Russian crude flows through the Druzhba pipeline have resumed after a disruption caused by a Ukrainian attack last week, according to Hungarian and Slovak officials. Despite U.S. tariffs doubling to 50% on Indian imports to curb Russian oil purchases, analysts expect India to continue buying Russian crude in the short term. U.S. crude inventories unexpectedly declined last week, providing some price support amid ongoing Russia-Ukraine attacks on energy infrastructure.
