Crude Oil Analysis – 28-June-2024

WTI crude futures climbed above $82 per barrel on Friday and are on track for a third consecutive weekly gain. This rise comes as increasing conflict in the Middle East overshadows uncertainties about demand.

Crude Oil Analysis - 28-June-2024

Crude Oil Analysis – 28-June-2024

Crude Oil Analysis – 28-June-2024

Oil prices are also expected to increase by over 6% in June and nearly 15% in the first half of 2024. Tensions between Israel and Lebanon’s Hezbollah have intensified, with Hezbollah ramping up rocket and drone attacks in northern Israel. This adds more pressure on the Israeli government, already in conflict with Hamas.

A broader conflict might involve Iran, a significant oil producer, with Turkish President Erdogan supporting Lebanon and calling for regional backing.

Meanwhile, recent data shows rising US crude and gasoline inventories, sparking concerns about demand in the US, the world’s largest oil consumer. Investors also await US PCE inflation data, which could influence the outlook for expected Federal Reserve interest rate cuts.

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