Oil prices edged higher on Thursday, extending gains from the previous day, as traders digested a surprise decline in US oil inventories.
Key Highlights:
- WTI (August) rose $0.57 to settle at $83.42 per barrel, up 0.69% on the day.
- Brent (September) advanced $0.36 to close at $85.44 per barrel, gaining 0.42%.
- US crude oil inventories fell by 4.87 million barrels to 440.2 million barrels last week, the third straight weekly decline.
- Analysts had expected inventories to rise by 800,000 barrels.
Market Movers:
The unexpected drop in US oil inventories provided support for prices, as it signaled a tightening of the supply-demand balance. The market is also keeping a close eye on geopolitical developments and demand expectations.
Geopolitical Factors:
Geopolitical tensions, particularly in the Middle East, could disrupt oil supplies and lead to price spikes. Investors are closely monitoring the situation in Iran, Venezuela, and other oil-producing regions.
Demand Expectations:
Global oil demand is expected to remain robust in the near term, supported by economic growth and the easing of COVID-19 restrictions in China. However, concerns about a potential recession in the United States could dampen demand growth later in the year.
Outlook:
Oil prices are likely to remain volatile in the near term, as traders weigh various factors, including supply disruptions, demand growth, and geopolitical tensions. The direction of prices will depend on how these factors evolve in the coming weeks and months.
Oil Prices – July 18, 2024
| Type of Crude Oil | Price (USD/barrel) | Change (vs. July 17) |
|---|---|---|
| WTI (August) | $83.42 | +$0.57 (+0.69%) |
| Brent (September) | $85.44 | +$0.36 (+0.42%) |
