Oil demand has been chasing records for most of the year, and OPEC has said it will raise output in order to meet demand and replace crude from unplanned disruptions. WTI Crude is $73.22; Brent is $78.96 this morning.
The American Petroleum Institute (API) reported Tuesday a higher-than-expected 9.2 million barrel reduction in U.S. crude inventories week of June 22 while analysts had estimated, on average, that stocks would fall by 2.6 million barrels. WTI Crude is $71.17; Brent is $76.89 this morning.
Much will depend on whether China and India, Iran’s two biggest oil customers, shun Iranian oil. The biggest threat is the U.S. cuts off access to the American banking system for foreign financial institutions trading with the Middle East nation’s central bank. WTI Crude is $72.49; Brent is $77.80 this morning.
Oil markets have tightened significantly since 2017 when OPEC and its partners started withholding supply propping up slumping prices. Some analysts say oil markets will stay tight. WTI Crude is $68.42; Brent is $75.60 this morning.
Oil prices late Friday and early Monday show confusion (US and Brent prices moving in different directions) over what to expect as a result of the OPEC/non-OPEC maneuver, and the emergence of other market-moving information. WTI Crude is $68.76; Brent is $74.32 this morning.
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