Brent and WTI oil prices closed higher today. Brent reached its highest level since late April.
The price of crude oil is rising as the market expects to be tight, despite the lingering concerns about growth.
The IEA anticipates strong demand, especially from China and other developing countries. The short-term outlook for crude oil demand shouldn't be too bad, as everyone will be taking vacations that require some travel during the summer," Edward Moya Senior Market Analyst at Oanda wrote Tuesday afternoon.
The first sign that the demand is changing will be an increase in crude oil sales.
Crude +3.026mm (-1.00mm exp)
Cushing -2.15mm is the biggest draw since May 2020
Gasoline +1.00mm (-1.1mm exp)
Distillates +2.908mm (+150k exp)
Last week, crude complex bulls were disappointed by the surprising (and significant) increase in inventory for gasoline, distillates and crude.
WTI's recent resurgence continued today. It traded within pennies at $75 on the high end (and back to the 'Saudi Cut" levels...
WTI prices dropped after the API data...
The market may be influenced by reports this week. On Tuesday, the Energy Information Administration will release its Monthly Short-Term Energy Outlook, and on Thursday, OPEC, the International Energy Agency, and other major forecasting agencies will provide their monthly outlooks.
The market will be
Looking out for any changes in their demand growth forecasts
Saxo Bank's report on the growth of 2023 shows that the majority of it will occur in the next few months.