Crude oil futures rose Wednesday as investors await the latest U.S. inventory data for guidance on how gasoline demand will hold up through the summer.
Oil prices retreated Tuesday as the recent rally stalled, but West Texas Intermediate and Brent are ahead 5.9% and 4.9% for the month as analysts expect a recovery in summer demand for fuel after a smooth start to the season.
Here are today’s energy prices:
- August West Texas Intermediate contract: $81.53 a barrel, up 70 cents, or 0.87%. Since the start of the year, American oil has gained 13.8%.
- August Brent contract: $85.66 per barrel, up 65 cents, or 0.76%. Year to date, the global benchmark is ahead by 11.2%.
- July RBOB Gasoline contract: $2.53 per gallon, up 0.76%. Since the start of the year, gasoline has gained 20.5%.
- July natural gas contract: $2.71 per thousand cubic feet, down 1.74%. Since the start of the year, gas is ahead by 7.7%.
Traders are awaiting confirmation of firming demand from the latest data on U.S. oil and gasoline inventories, which the Department of Energy is expected to release at 10:30 a.m. ET.
“The pervasive view is that demand will increase over the summer and that, with OPEC+ cuts fully in place until October, global and OECD stocks are expected to run out,” said John Evans, analyst at oil broker PVM, in a note published Wednesday.
“Convincing inventory declines in the United States would go a long way to bolstering this optimism,” Evans said.
Analysts expect U.S. oil and gas inventories fell by 2.9 million barrels and 1 million barrels, respectively, last week, according to a Reuters poll.
Traders are also monitoring the situation on the Israeli-Lebanese border. Israel and the Iran-backed Hezbollah militia have recently threatened war, after exchanging fire across the border for months.
There are fears that an Israeli offensive in Lebanon could trigger a direct confrontation with OPEC member Iran, potentially putting crude oil supplies at risk.
News Source : www.cnbc.com
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