Tension has been rising in the Middle East after attacks on two tankers near the Strait of Hormuz. Adding to oil higher prices was a decline in U.S. crude inventories and the prospect of prolonged supply restraint by OPEC and its allies. WTI Crude is $55.64; Brent is $63.54 this morning.
Futures climbed 3.8% on Tuesday and steadied this morning. OPEC and its allies will hold their next meeting on July 1-2 to discuss production curbs. Cuts would shrink global inventories by about 500,000 barrels a day in the second half of this year, helping to boost prices. WTI Crude is $53.82; Brent is $61.66 this morning.
Traders are not giving adequate consideration to upward oil price pressure based on tanker attacks near the Strait of Hormuz, which could cause significant disruption to crude flows. Oil has lost about 20% since late April as growing inventories and the trade dispute between the U.S. and China cloud the demand outlook. WTI Crude is $51.82; Brent is $60.64 this morning.
China’s industrial output growth is falling to the lowest level in 17 years amid trade tensions with the U.S. Oil markets will have to digest more demand concerns as India began retaliatory tariffs on several U.S. goods yesterday. WTI Crude is $51.93; Brent is $61.30 this morning.
Both sides have said they’re not looking for war, but events have taken on a momentum of their own with the U.S. and Iranian forces bolstering their military presence. WTI Crude is $52.12; Brent is $61.39 this morning.
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