"In terms of oil fundamentals, crude and product supply tightness has eased. OPEC pumped an additional 145,000 b/d in July, with Saudi Arabia seemingly following up on earlier pledges to raise supply. In product markets, the distillate tightness that has been a pillar of support of high oil prices this year has now begun to loosen, as demand from key sources weakens and the global refinery system has ramped up output."
Oil market fundamentals have changed in recent weeks with supply tightness in both crude and products easing and a slowdown in demand increasingly apparent, the International Energy Agency said Tuesday.

Updated: August 12, 2008