Oil prices rise on demand optimism and rebel attacks, OPEC+ production increase a concern

Oil prices surged to 2-week highs after Saudi Arabia increased prices for its main crude grade for Asian buyers more than expected. Tensions in the Middle East rose as Houthi rebels attacked a ship in the Red Sea, potentially leading to US military action. Concerns about a global oil glut persisted as OPEC+ decided to raise crude production by 548,000 bpd starting August 1, exceeding expectations. The move was seen as a strategy to lower prices and punish overproducing members like Kazakhstan and Iraq. Tariff worries and an increase in oil stored on tankers also weighed on prices. US oil inventories were below seasonal averages, while active rigs in the US hit a 3.75-year low.

Read more at Yahoo Finance: Energy Demand Optimism and Houthi Rebel Attacks on Red Sea Shipping Boost Crude Prices