August crude oil (CLQ25) closed on Monday over +0.93 (+1.39 %), and closed RBOB gasoline (RBQ25) +0.0336 (+1.59 %).
Oil prices were recovered from early losses on Monday and gathered to their highest levels in the two weeks after the Kingdom of Saudi Arabia raised their prices for the main row of buyers in Asia next month with more than expected. Raw prices are added to their gains on high tensions in the Middle East after the Houthi rebels attacked a ship sailing across the Red Sea, which could attract US military strikes against the Houthi rebels. Crude prices fell initially on Monday due to a stronger dollar, and after OPEC+ raised its raw production level than expected on Sunday.
Supporting crude oil prices is signs of stronger crude demand, as it is clear from producers in the Kingdom of Saudi Arabia, which raised their prices for their Arab light to buyers in Asia by $ 1 per barrel, above the expectations of an increase of 65 degrees.
Increasing tensions in the Middle East support crude prices after the Houthi rebels in Yemen claimed responsibility for an attack on a ship sailing across the Red Sea on Sunday, the first strike of the merchant’s shipment this year.
Anxiety about global oil abundance is negative for raw prices. On Sunday, OPEC+ agreed to raise its raw production by 548,000 barrels per day (BPD) starting from August 1, exceeding 411,000 barrels per day. The Kingdom of Saudi Arabia also stated that the similar additional increases in crude production can be followed, which are seen as a strategy to reduce oil prices and punish OPEC+ production, such as Kazakhstan and Iraq. OPEC+ produces to reflect a two -year production reduction, which gradually leads to a total of 2.2 million barrels per day by September 2026. On May 31, OPEC+ agreed to increase 411,000 barrels per hour in crude production for the month of July, after a height of 411,000 barrels per day for June. Raw production increased in June +360,000 barrels per day to the highest level at 28.10 million barrels per day.
Oil prices are still undermining them due to concerns related to tariffs before the deadline on July 9, when President Trump says he will implement a mutual tariff for imports from any country that has not yet reached a trade agreement with the Trump administration.
The increase in crude oil that has been held all over the world on the dumping tankers of oil prices. Vortexa reported on Monday that crude oil stored on tankers that were fixed for at least seven days increased by 3.6 % w/W to 79.55 million barrels in the week ending July 4.
The environmental impact assessment report showed last Wednesday that (1) American crude oil lists from June 27 were less than an average of 9.3 % of the seasonal average for a period of 5 years, (2) gasoline stocks were less than -0.7 % than the seasonal average for a period of 5 years, and (3) distillation stocks by -21.0 % of the seasonal average for a period of 5 years. US crude oil production has not changed in the week that ends on June 27 with 13.433 million barrels per day, which is modestly less than the 3.631 million barrels per week from the week of December 6.
Baker Hughes reported last Thursday that the active American oil platforms in the week ended 4 July decreased by 7 to the lowest level in 425 years from 425 platforms. Over the past 2.5 years, the number of US oil platforms has decreased sharply from the highest level in 627 years of 627 devices reported in December 2022.
On the date of publication, Rich Asplund did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
The post Crude Prices Climb on Energy Demand Optimism and Middle East Tensions first appeared on Investorempires.com.
