Crude oil markets pulled back a bit during the early hours on Tuesday, but it looks like we are going to continue to find support just below. Because of this, I think the overall upward trajectory should continue over the next several weeks.
U.S. crude oil is trading just above $81 per barrel as prices have pulled back. West Texas Intermediate and Brent are ahead 5.5% and 4.9%, respectively, for the month.
Oil futures were lower Tuesday morning, consolidating after front-month Brent ended the previous session at a nearly two-month high, buoyed in part by geopolitical worries.
Geopolitical risks, strong US summer demand, and tightening inventories support near-term oil prices despite concerns about China's economic recovery.
Oil prices were little changed on Tuesday as worries about China's economic recovery prospects offset supply concerns stemming from tensions in the Middle East and Ukrainian attacks on Russian refineries.
Oil futures edged higher Monday morning, attempting to build on back-to-back weekly gains as crude rebounded from an early June slump that took prices to their lowest since early February.
A strong dollar and potential high interest rates make oil's short-term outlook bearish but sensitive to geopolitical events.
Oil prices fell in early Asian trade on Monday for a second straight session, weighed down by a stronger dollar after concerns of higher-for-longer interest rates resurfaced and cooled investors' risk appetite.
Crude oil prices remain bullish short-term. Watch inventory drawdowns and Middle East tensions for potential price impacts as market tightens.
During the trading session on Friday, there was a drone attack on a Russian refinery via Ukraine, causing quite a bit of noise in the crude oil market. That being said, we are still very much a market that is trying to grind higher in general.
U.S. crude oil has gained 3.6% for the week. Gasoline demand last week surged to the highest level for that period since the pandemic ended, according to JPMorgan.
Oil futures ticked lower Friday, but remained on track for solid weekly gains as investors gauged the potential for a wider Middle Eastern conflict that could endanger crude flows from the region, while falling U.S. crude and gasoline inventories offered reassurance on domestic demand prospects.