Brent crude hovers around $87 per barrel, poised for its fourth consecutive weekly gain as global equities hit record highs and US inventories decline.
Positive market sentiment and expectations of interest rate cuts are supporting the recent rally, despite weaker US hiring and wage growth in June.
A sharp drop in US stockpiles this week indicates tightening supplies, while concerns about an active hurricane season add to market dynamics.
Oil prices have steadily climbed since June, driven by optimistic summer demand forecasts and healthy near-term consumption signaled by bullish timespreads.
Analysts, like John Evans from PVM, affirm the robustness of the current price rally, emphasizing bullish expectations for the third quarter despite softer demand signals from Asia prompting Saudi Aramco to reduce crude prices for the region.
One of the most important U.S. economic metrics, the jobs report, was just released by the Bureau of Labor Statistics.
Thomas Barkin, President of the Richmond Fed, emphasized the importance of monitoring economic indicators and inflation trends to guide future interest rate adjustments.
U.S. Federal Reserve Chair Jerome Powell envisions a shift toward a more “neutral stance” in future monetary policy.
On Tuesday, cryptocurrency values experienced a downturn, with Ethereum dipping below the $2,500 mark amid rising geopolitical tensions triggered by Iran’s missile strikes on Israel.