Oil News: With Summer Demand Expected, Crude is Trading Close to a Two-Month High and a Potential Rate Decrease

Oil News: With Summer Demand Expected, Crude is Trading Close to a Two-Month High and a Potential Rate Decrease

Due to predictions for increased gasoline consumption from the summer travel season and potential US interest rate cuts that could spur economic development, oil prices on Tuesday barely moved, remaining close to the two-month highs hit in the previous session, according to Reuters.

As of 9:34 a.m. Saudi time, Brent oil futures were up 28 cents to $86.88 a barrel, up 1.9 percent from the previous session’s high close of April 30.

US West Texas Intermediate oil increased by 20 cents to $83.58 per barrel, reaching a peak of 2.3 percent on April 26.

According to Vandana Hari, founder of oil market analysis company Vanda Insights, the movement in oil prices “appears to be more fear and sentiment driven than fundamentals.” She cited Hurricane Beryl, the likelihood of an Israeli-Iranian conflict, and the outlook for summer fuel demand as supporting factors.

With this week’s Independence Day vacation, summer travel is projected to speed up, leading to an increase in gasoline demand in the US, the world’s largest oil user. According to the American Automobile Association’s prediction, travel over the holiday season would increase by 5.2 percent from 2023 to 2024, with car travel alone increasing by 4.8 percent.

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