On Tuesday, August WTI crude oil closed up $0.34 (+0.52%) at $65.73 per barrel, while August RBOB gasoline rose $2.82 (+1.36%) to $210.28 cents per gallon. This increase in prices followed a decline in the dollar index to a 3.5-year low and concerns over renewed tensions in the Middle East, particularly after Iran’s decision to cut communications with the International Atomic Energy Agency (IAEA).
On the economic front, the US June ISM manufacturing index rose to 49.0, surpassing expectations. Additionally, job openings in May increased unexpectedly to 7.769 million, indicating a stronger labor market than anticipated. OPEC+ is expected to meet on Sunday to discuss increasing crude production by 411,000 barrels per day (bpd), a move that may limit gains in crude oil prices. Currently, OPEC+ has a goal to gradually restore 2.2 million bpd by September 2026.
The American Automobile Association (AAA) projected a record 61.6 million Americans will travel by car during the July Fourth holiday, reflecting a 2.2% increase in gasoline demand. In comparison, US crude stocks were reported to be at 10.9% below the seasonal five-year average, alongside gasoline inventories at 2.8% below the same average.
