- Crude oil prices spiked after Israel assassinated Hamas’s political leader on Iranian soil, leading to threats of retaliation from Tehran.
- The ongoing conflict in the Middle East, combined with record US oil demand, has created a bullish environment for oil prices.
- Early on Thursday morning, WTI was trading around $78.50 while Brent had climbed above $81.
Iran’s representative called the assassination of Haniyeh an act of terrorism, according to a Reuters report on the latest developments in the situation.As pressure remains high in the Middle East, Brent crude topped $81 per barrel before paring some of its gains earlier today, and West Texas Intermediate climbed closer to $79 per barrel.
In additional bullish news for oil, the Energy Information Administration reported that oil demand in the United States had reached a seasonal record in May, at 20.80 million barrels daily. That was quite a significant revision from EIA estimates, which saw May demand at 20 million barrels daily.
Global oil inventories, meanwhile, are on a downward trajectory, reaching a record deficit relative to their average levels, Eric Nuttall, senior portfolio manager at Ninepoint Partners told Bloomberg this week. Nuttall also noted OPEC+ production cut compliance improvements as a factor for a bullish view on oil.Unless tension in the Middle East gets defused through diplomacy, oil may continue up based on fundamentals and the geopolitical premium.
Source:https://oilprice.com