Despite concerns over high interest rates and their potential impact on economic growth and oil demand, the crude oil market has shown resilience.
Oil prices have surged to a seven-week high, bolstered by a 2.3 million barrel drop in gasoline inventories.
Crude oil futures slid in early trade on Friday on the prospect of higher-for-longer interest rates in Asia and the United States, while falling U.S. oil inventories kept prices from moving lower.
Crude oil approaches critical resistance at 82.26, with potential for continued rally or consolidation, signaling an increase in market volatility.
Gasoline inventories decreased by 2.3 million barrels from the previous week.
The crude oil markets rallied slightly during the early hours on Thursday as it looks like we are building a bit of a base for the next swing higher. At this point in time, I remain bullish on this market.
West Texas Intermediate is on pace for a second consecutive weekly gain. JPMorgan is forecasting Brent will hit $90 by September on summer fuel demand.
Oil futures were little changed early Thursday, hovering near their highest since late April, as U.S. traders returned from a midweek holiday break and awaited official data on inventories.
Environmental protestors said the Supreme Court ruling over the Horse Hill oil wells is a "watershed moment" for the fossil fuel industry, said lawyer Friends of the Earth, making it harder for new fossil fuel projects to go ahead. In a three-to-two majority, Supreme Court judges said Surrey County Council acted unlawfully by granting planning permission for an expansion of oil production at Horse Hill without considering the downstream emissions.
In a ruling that could prevent other new UK fossil fuel developments from going ahead, the Supreme Court has ruled that a local council wrongly ignored the impact of future emissions. Emissions created by burning fossil fuels should be considered when granting planning permission for new drilling sites, Lord Justice George Leggatt ruled, though the court's decision was by a three to two majority.
The short-term outlook for crude oil is neutral to slightly bullish, contingent on inventory data and geopolitical developments.
The oil market has been somewhat quiet during the Wednesday holiday in the United States, but it has shown signs of rallying higher, and breaking out. This is probably a sign that you should be paying attention to.