- Brent oil prices increased by 0.8% to $87.27 a barrel at 07:20 ET (11:20 GMT), while West Texas Intermediate oil futures increased by 0.9% to $84.12 a barrel.
- In the most recent session, both benchmarks saw gains of almost 2%, reaching their best points since the end of April.
The week of Independence Day will see more travel.
- The expectation that U.S. gasoline consumption would increase with the arrival of the summer travel season has contributed significantly to the recent surge in crude prices.
- Due to the Independence Day vacation, the American Automobile Association predicted that a record number of people would drive this week.
- According to a recent statement from the AAA, “We anticipate this July 4th week will be the busiest ever with an additional 5.7 million people traveling compared to 2019.”
- Summertime travel is good news for gasoline demand, but how much of this tendency is really at work has been called into doubt by a recent, steady rise in U.S. fuel stockpiles.
Hurricane supply hazards abound in the Middle East
- Concerns for a full-scale Middle East conflict have been a significant factor supporting crude in recent sessions, as tensions over Gaza between Israel and Hezbollah have not abated.
- Traders wagered that a larger fight would impair Middle Eastern supply, which is why they assigned a greater risk premium to petroleum over the conflict. Crude’s risk premium was also influenced by ongoing hostilities between Russia and Ukraine, the latter of which was targeting Moscow’s oil infrastructure.
- As traders placed bets on higher demand for the Independence Day vacation and possible supply threats from geopolitical and weather-related disruptions, oil prices climbed on Tuesday, reaching two-month highs.
- Brent oil prices increased by 0.8% to $87.27 a barrel at 07:20 ET (11:20 GMT), while West Texas Intermediate oil futures increased by 0.9% to $84.12 a barrel.
- In the most recent session, both benchmarks saw gains of almost 2%, reaching their best points since the end of April.
The week of Independence Day will see more travel.
- The expectation that U.S. gasoline consumption would increase with the arrival of the summer travel season has contributed significantly to the recent surge in crude prices.
- Due to the Independence Day vacation, the American Automobile Association predicted that a record number of people would drive this week.
- According to a recent statement from the AAA, “We anticipate this July 4th week will be the busiest ever with an additional 5.7 million people traveling compared to 2019.”
- Summertime travel is good news for gasoline demand, but how much of this tendency is really at work has been called into doubt by a recent, steady rise in U.S. fuel stockpiles.
Hurricane supply hazards abound in the Middle East
- Concerns for a full-scale Middle East conflict have been a significant factor supporting crude in recent sessions, as tensions over Gaza between Israel and Hezbollah have not abated.
- Traders wagered that a larger fight would impair Middle Eastern supply, which is why they assigned a greater risk premium to petroleum over the conflict. Crude’s risk premium was also influenced by ongoing hostilities between Russia and Ukraine, the latter of which was targeting Moscow’s oil infrastructure.
Source:
investing
