Iran tensions and dollar weakness lead to crude oil price support

From Yahoo Finance: 2025-07-01 15:18:00

Crude oil and gasoline prices rose Tuesday, with WTI crude up 0.52% and RBOB gasoline up 1.36%. Concerns over Middle East tensions and Iran’s cut-off of IAEA communications supported prices, while positive global economic news boosted demand. Expectations of increased OPEC+ production levels may limit gains.

Iran’s move to cut off communication with the IAEA raised support for crude oil prices. President Trump’s warning of potential attacks on Iran’s nuclear sites further contributed to the rise in prices.

Global economic strength was seen in positive data, including a rise in US June ISM manufacturing index and JOLTS job openings, along with upward revisions in Eurozone and Japan manufacturing PMI.

Russia’s openness to another OPEC+ output hike for August, signaling potential increases in crude production, contributed to concerns about a global oil glut. Saudi Arabia’s strategy to reduce oil prices may impact overproducing OPEC+ members.

Gasoline prices are supported by a record number of travelers expected for the Fourth of July holiday, indicating stronger demand.

Tariff concerns and potential unilateral tariffs by President Trump continue to impact oil prices negatively.

A decrease in crude oil held on tankers globally is positive for oil prices, as reported by Vortexa.

Expectations for the weekly EIA crude inventories show a decrease of -3.1 million bbl, with gasoline supplies expected to rise by +900,000 bbl.

Recent EIA reports show US crude oil inventories below seasonal averages, with stable production levels. Active US oil rigs have decreased to a 3-3/4 year low.



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