WTI Crude Oil Analysis – 18-June-2024

WTI crude futures rose above $81 per barrel on Thursday, building on the gains from the day before. This increase was due to a bigger-than-expected drop in US crude inventories.

WTI Crude Oil Analysis – 18-June-2024

EIA data showed that US crude stocks fell by 4.87 million barrels in the week ending July 12. This was the third straight week of declines, beating market expectations of a 0.8 million barrel drop. It was also the longest streak of stockpile reductions since September.

Moreover, recent comments from Federal Reserve officials have raised hopes for US rate cuts. Traders now see a 98% chance of a rate cut in September. Lower interest rates can boost the economy and increase oil demand. Additionally, geopolitical tensions helped lift oil prices. Reports indicated that Yemen’s Houthis attacked a Liberia-flagged tanker in the Red Sea.