Oil is slightly cheaper after a sharp increase in July

The first trading day of August is accompanied by a weak decline in oil prices after July was completed with a sharp rise above the level of $85 per barrel. 

The current Brent quote is $84.90 per barrel, North American WTI oil is trading near $81.20 after rising to $81.90 in the previous session.

The main factor supporting oil prices was the expectation of a shortage in the global fuel market in the second half of the year against the background of a decrease in supplies by OPEC+ countries. Favorable macroeconomic data from the world's leading economies also had a positive impact.

Analysts expect that the United States will partially compensate for the decrease in production volumes in Russia and Saudi Arabia. However, drilling statistics indicate that American producers are in no hurry to increase production volumes. Therefore, a steady shortage in the market in the foreseeable future is not excluded.

Nevertheless, despite continuing fears of a recession, most economic surveys and consumer sentiment measurement tools indicate positive dynamics, which usually leads to an increase in demand for gasoline and jet fuel.