Crude Oil Prices Rise Amid Energy Demand Optimism

Crude oil and gasoline prices hit 2-week highs after UAE Energy Minister’s comments on lack of inventory buildups. Saudi Arabia’s Aramco also optimistic on global oil demand despite tariffs. However, EIA crude inventories unexpectedly rose, causing prices to dip slightly. Tensions in Middle East from Houthi attacks also support crude prices.

OPEC+ agreed to increase crude production by 548,000 bpd in August, surpassing expectations. Saudi Arabia hinted at more increases to penalize overproducing members and reduce prices. OPEC+ aims to restore 2.2 million bpd by September 2026. Trump’s tariff threats continue to impact oil prices negatively.

Crude oil stored on tankers increased by 3.6% w/w to 79.55 million bbl. Weekly EIA report showed mixed results: gasoline supplies fell more than expected, distillate stockpiles experienced a smaller draw, while crude inventories had a larger draw. US crude oil production slightly decreased to 13.385 million bpd.

Baker Hughes reported a decrease in active US oil rigs to a 3.75-year low of 425 rigs. US oil rigs have significantly declined since reaching a high of 627 rigs in December 2022. The EIA report indicated that US crude oil inventories were below seasonal averages, with gasoline and distillate inventories also showing reductions.

Read more at Yahoo Finance: Crude Oil Gains on Energy Demand Optimism