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05/07/24
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Crude Prices Higher as Investors Focus on Potential Supply Disruptions, Strong Fuel Demand
On Friday, crude prices rose and reached the highest levels since April and bounced back from June lows as investors focused on potential supply disruptions and strong summer fuel demand.
Brent crude futures were 39 cents, or 0.45% higher at $87.82 per barrel. U.S. West Texas Intermediate crude futures rose 48 cents, or 0.57%, to $84.36 per barrel.
Due to the Independence Day holiday, WIT didn’t settle on Thursday as it gave way to thin trading, but prices gained this week on strong summer demand expectations for the U.S.
On Wednesday, the U.S. Energy Information Administration reported a massive 12.2M barrel inventories drawdown last week, versus analyst expectations for a 700K barrel draw.
A Category 2 storm, Hurricane Beryl, reached land in Mexico, after its deadly trail of destruction across various Caribbean islands.
Although it is not expected Mexico’s major oil platforms will be shut down or impacted, oil projects in U.S. waters in the north may be affected if the hurricane continues on the path expected.
In June, U.S. job growth slowed slightly, but an increase in the unemployment rate to a more than a 2.5-year high of 4.1% and the wage gain moderation points to labor market conditions easing.
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