Mumbai, 5 Jul (Commoditiescontrol): WTI crude futures climbed to around $84 per barrel on Friday, poised to mark a fourth consecutive weekly gain as dwindling U.S. crude inventories and robust seasonal demand bolstered oil prices. The U.S. oil benchmark has increased approximately 3% this week.
The U.S. Energy Information Administration (EIA) reported a significant decline in U.S. crude stockpiles, down by 12.2 million barrels last week, far surpassing expectations of a 680,000 barrel draw. Additionally, U.S. gasoline stocks fell by 2.2 million barrels, exceeding the anticipated 1 million barrel drop, indicating strong seasonal demand.
Geopolitical tensions in the Middle East further supported oil prices. Reports of Israel killing a senior Hezbollah commander and subsequent retaliatory actions by Hezbollah heightened concerns about oil supply disruptions.
On the supply side, Russia's leading oil producers, Rosneft and Lukoil, announced significant cuts in oil exports from the Black Sea port of Novorossiisk for July, according to Reuters. This reduction adds to the supply constraints impacting global oil markets.
Meanwhile, Saudi Aramco, the state-owned oil giant, lowered the price for its flagship Arab Light crude for Asian buyers in August to $1.80 per barrel above the Oman/Dubai average. This price cut highlights the pressure faced by OPEC producers amid growing non-OPEC oil supply.
Investors are also closely watching the upcoming U.S. monthly jobs report, which could solidify expectations for Federal Reserve interest rate cuts this year, potentially influencing oil demand and prices further.
WTI crude futures are benefiting from lower U.S. crude and gasoline inventories, escalating geopolitical tensions, and strategic supply adjustments by major oil producers, setting the stage for a continued rise in oil prices.
(By Commoditiescontrol Bureau: 09820130172)
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