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WTI crude oil for July is up $0.50 (+0.77%) and RBOB gasoline is up $0.0177 (+0.85%) as prices reach a 2-1/4 month high for crude and a 1-week high for gasoline. The rise can be attributed to a weaker dollar, reduced oil production in Canada due to wildfires affecting 350,000 barrels per day, and expectations surrounding US-China trade talks that may alleviate trade tensions.
Recent data released shows that US active oil rigs fell to a 3-1/2 year low of 442 rigs, indicating lower near-term crude production. Additionally, OPEC+ announced plans to increase crude output by 411,000 barrels per day in July and potentially September, amidst rising global oil inventories, which have increased by 170 million barrels over the past 100 days.
Concerns regarding a potential oil supply glut are highlighted by a report from Vortexa indicating a 9.1% week-over-week increase in crude oil stored on stationary tankers, now totaling 81.83 million barrels. Meanwhile, last week’s EIA report noted that US crude inventories were 7.0% below the seasonal 5-year average.
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