Oil prices rose by over 1% on Wednesday, rebounding from a significant drop earlier in the week.
Brent crude futures saw an increase of 1.2%, reaching $67.96 a barrel, while U.S. West Texas Intermediate (WTI) crude went up 1.3% to $65.20.
Driving the news: The surge in oil prices came as a response to data showcasing robust U.S. demand and the evaluation of a ceasefire between Iran and Israel.
- Brent settled at its lowest point since June 10, and WTI at its lowest level since June 5 but saw a rise post a series of key events.
- Prices surged after Israel’s surprise attack on Iranian military and nuclear facilities on June 13. The escalation continued as the U.S. conducted strikes on Iran’s nuclear sites over the weekend, leading to five-month highs in oil prices.
- Market optimism was further fueled by the Energy Information Administration’s report demonstrating declines in U.S. crude, gasoline, and distillate inventories for the week. Crude inventories decreased by 5.8 million barrels to 415.1 million barrels, surpassing analysts’ predictions of a 797,000-barrel reduction.
What we’re watching: Market analysts predict oil prices will stabilize between the $65-70 per barrel range as traders await further U.S. macroeconomic indicators and the Fed’s upcoming rate decision.
