On Monday, August WTI crude oil closed up +0.93 (+1.39%) at $67.36 per barrel, while August RBOB gasoline increased by +0.0336 (+1.59%). This rise followed Saudi Arabia’s unexpected price hike for its Arab Light crude for Asian buyers, which was raised by $1 per barrel, contrasting with an anticipated 65-cent increase.
Tensions in the Middle East escalated after Yemen’s Houthi rebels attacked a ship in the Red Sea, which could provoke US military responses. Compounding these factors, OPEC+ agreed on Sunday to boost crude production by 548,000 barrels per day starting August 1, surpassing expectations of a 411,000 bpd increase, as part of a plan to reverse a two-year production cut.
Despite the uptick in oil prices, concerns about a global glut persist, as Vortexa reported a 3.6% weekly increase in crude oil held on tankers, reaching 79.55 million barrels as of July 4. The latest EIA report indicated US crude oil inventories were 9.3% below the seasonal five-year average, while active US oil rigs fell to a 3.75-year low of 425.
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