Crude oil prices were expected to close the week higher than they started, extending their most recent uptrend to a full month, despite a decrease yesterday due to negative economic news from the US. According to Reuters, oil has increased by 9% in the last four weeks for Brent crude and by $10 a barrel for West Texas Intermediate, bringing the total to its highest level since April.
Strong mobility indicators and growing geopolitical tension in the Middle East have bolstered market mood this week, according to ANZ analysts’ report earlier today, which was cited by Reuters. However, Bloomberg reports that the anxiety surrounding a Gulf of Mexico hurricane season that is more active than usual may keep prices supported in the upcoming weeks.
The most recent jobless data from the US indicated that the Fed may decide to start lowering interest rates sooner rather than later, which would support oil prices even more. Last week, both the number of initial jobless claims and the overall unemployment rate increased. As cited by Reuters, ANZ analysts stated in a note earlier today that “strong mobility indicators and intensifying geopolitical tension in the Middle East have supported market sentiment this week.”
The Russian companies Lukoil and Rosneft are expected to drastically cut their crude shipments this month following the conclusion of the refinery maintenance season, which is more positive news. It was reported by Reuters, citing two anonymous sources, that the combined loadings of the two businesses at the port of Novorosiisk in the Black Sea are expected to be 220,000 bpd less in July than they were in June.
