WTI Crude Oil Analysis – 1-July-2024

WTI crude futures climbed toward $81.6 per barrel on Monday, close to a two-month high from last week. This rise is due to the expected high summer fuel demand possibly causing a supply shortage and the anticipation that OPEC+ will cut supply further in the third quarter.

Additionally, recent US PCE inflation data, showing softer inflation, bolstered expectations for Federal Reserve rate cuts.

WTI Crude Oil Analysis – 1-July-2024

Atlantic Hurricanes Threaten US Oil Supply

EIA data showed that oil production and demand hit a four-month high in April. However, traders are closely watching the potential impact of the Atlantic hurricane season, which began over the weekend, on US oil flows.

In other news, US, European, and Arab mediators are striving to prevent tensions between Israel and Hezbollah from escalating into a more significant Middle East conflict that could involve Iran.