US Inventory Report Pushes Oil Prices Higher
The US inventory report was mixed, causing oil prices to tick upwards toward their highest position for the year.
WTI crude climbed to $78 a barrel, while Brent crude went up to $83. Murban crude ticked up to $82.72, mirroring the average price increase of the others at 0.55%. Natural gas prices dropped 2.07% to $1.65, on the plus side.
More official data is coming out later on Wednesday, but for now, the crude oil market is up nearly 0.50% for the day. There were mixed signals from different sectors as market volatility dropped 8.96%. Fuel margins are improving slowly but surely, and with tight oil supplies, that could increase the price of oil again soon.
On the other hand, global oil demand should increase, according to the top OPEC official in an announcement on Tuesday. Supply cuts were issued by OPEC, but they reported that there was minimal compliance. The International Energy Agency had good news to report, as they predicted that worldwide oil consumption needs should be easily met by the expected growth supply.
The Road ahead for Oil
Oil has managed to make it through a tough financial season, but it does not seem poised for vast improvement in the coming months.
Crude oil is 7% higher for the year and likely to increase, thanks to added tensions in the Middle East between Palestine and Israel and now the United States and Iran. If attacks continue there, the oil supply could become critical and prices may escalate.
The US Energy Information Administration is predicting that crude oil prices will stay about the same by the end of the year. They expect Brent crude oil to move to $81 a barrel by December of this year, with prices dropping a few dollars a barrel by the end of 2025. They anticipate that prices will increase into the fall months and then start dropping just before the end of the year.
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