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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

US Inventories Push Oil prices to Two-Month High


Thu 04 Jul 2024 | 01:21 AM
Oil pumping cranes in an oil field in Russia - Source: Bloomberg
Oil pumping cranes in an oil field in Russia - Source: Bloomberg
Taarek Refaat

Oil prices closed at their highest levels in more than two months, after a government report showed that US crude inventories shrank at the largest pace in almost a year.

West Texas Intermediate (WTI) increased by 1.3% to settle near $84 a barrel, the highest closing price since mid-April, after the Energy Information Administration announced a decline of 12.2 million barrels in oil inventories, the largest decline since late July 2023.

Latest Oil Prices:

WTI CRUDE • 83.62 -0.26 -0.31%

BRENT CRUDE • 87.34 +1.10 +1.28%

MURBAN CRUDE • 87.35 +1.06 +1.23%

LOUISIANA LIGHT • 86.99 -0.61 -0.70%

BONNY LIGHT • 86.00 -0.62 -0.72%

MARS US • 76.40 -1.43 -1.84%

Crude oil remains strongly higher this year as the OPEC+ alliance restricts supplies. Futures were also supported by the risk-on sentiment in equity markets.

Geopolitical risks are also contributing to gains, as investors monitor elections in France and the UK, as well as Iran. In the Middle East, the escalation between Israel and Lebanese Hezbollah threatens to spill over into a broader conflict.

More recently, concerns about an active hurricane season supported prices as Hurricane Beryl moved across the Caribbean towards Jamaica.

Investment funds appear to be more optimistic about European gas prices than at any time since November 2021, indicating a strong belief that supplies are likely to tighten.

However, the US macroeconomic environment has added headwinds. Federal Reserve Chairman Jerome Powell said on Tuesday that the latest economic data indicates that inflation is returning to a downward path, but he stressed that officials need more evidence before cutting interest rates.