West Texas Intermediate futures for August delivery dropped to $51.48 (-1.38%); Brent crude declined to $57.25 (-1.04%) as markets prepared for announcement of a deal between Iran and global powers today. An agreement would allow Iran to increase its oil exports gradually.
Meanwhile the Organization of the Petroleum Exporting Countries raised its global oil demand forecast for this year by 100,000 barrels per day to 92.61 million bpd. According to the organization's July report, demand for oil in 2016 will be 93.94 million bpd. Thus demand growth will accelerate to 1.34 million bpd in 2016 from 1.28 million bpd in 2015. At the same time the cartel reported an increase in its own production by 283,000 bpd in June, to average of 31.38 million bpd.