Monthly Pricing - 01/08/2019

Despite continued conflict in the Middle East, particularly around the Strait of Hormuz, Brent Crude prices fell 2.7% across July due to concerns around declining demand.

GBP suffered throughout July, falling from 1.27 to a 28-month low of 1.21 against USD, over fears that the UK is heading for a no-deal Brexit due to new PM Johnson’s stance.

Iran’s relationship with the West worsened in July after an Iranian tanker was seized due to contravention of EU sanctions, before Iran took a British vessel in retaliation.

Price Drivers

Supply Hurricane Barry cut output in Gulf of Mexico by 73%. US rig count down to 776, a fall of 85 year-on-year.
Demand UK car manufacturing figures fall for a 5th year running. IEA has lowered its oil demand forecast by 100k bpd in 2019.
Geo-Political Boris Johnson takes office as UK Prime Minister. OPEC extends production cut agreement to 2020.