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Oil Prices Near Two-Month High on US Supply Drawdown

Quiver Editor

Oil held near a two-month high on signs of a large drawdown in US crude stockpiles. West Texas Intermediate edged higher to top $83 a barrel ahead of the Energy Information Administration’s weekly stockpile report. The American Petroleum Institute on Tuesday reported crude inventories shrank by 9.2 million barrels last week. If confirmed in official figures later Wednesday, that would be the largest drop in barrel terms since January.

Crude remains solidly higher this year, with futures helped by a wider risk-on mood in equity markets as the US benchmark S&P 500 hits record after record. Anxieties over a potentially active hurricane season have also been supportive as Hurricane Beryl churns through the Caribbean toward Jamaica.

Market Overview:
  • WTI crude near $83 a barrel.
  • API reports 9.2 million barrel drawdown.
  • Hurricane season fears bolster prices.
Key Points:
  • Crude futures boosted by equity market gains.
  • Potential   ,   potential active hurricane season impacts oil prices.
  • Geopolitical tensions in the Middle East continue.
Looking   Ahead:
  • Awaiting EIA confirmation of API data.
  • Monitoring hurricane season developments.
  • Geopolitical risks may influence future oil prices.

Geopolitical risks are contributing to the gains as well, with investors monitoring elections in France and the UK, as well as Iran. In the Middle East, escalations in the conflict between Israel and Hezbollah threaten to spill over into a wider conflict, while Israel Defense Forces strikes have killed eight Palestinians as they fled from Gaza’s Khan Younis.

U.S. crude inventory drawdowns are closely watched by market participants, especially during periods of geopolitical tension. The potential for disruptions in oil supply routes and increased demand during hurricane season can significantly impact prices.

About the Author

David Love is an editor at Quiver Quantitative, with a focus on global markets and breaking news. Prior to joining Quiver, David was the CEO of Winter Haven Capital.

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