At 11:38 GMT, Light Crude Oil Futures are trading $65.54, up $0.30 or +0.46%.
OPEC+ Meeting in Focus as Geopolitical Premiums Fade
Oil prices are on track for their steepest weekly decline in over two years, falling around 12%, as markets discount the risk premium tied to the Iran-Israel conflict following last week’s ceasefire. Brent, which briefly topped $80 per barrel during the conflict, has retreated sharply to $67 as traders pivot back to supply-demand fundamentals.
Attention now shifts to the upcoming OPEC+ meeting on July 6, where members will decide on August production targets. Analysts at Rystad Energy highlight that while there may be room for one additional month of accelerated unwinding, the market’s direction will depend heavily on the strength of summer demand indicators, which will guide OPEC’s production posture into the second half of the year.
Inventory Draws and China’s Iranian Crude Imports Support Sentiment
Multiple inventory data points are providing support to prices despite the broader weekly decline.
The U.S. Energy Information Administration reported a draw in crude and fuel inventories alongside rising refining activity and demand, while data from the Amsterdam-Rotterdam-Antwerp hub showed independently held gasoil stocks falling to their lowest in over a year.
Singapore’s middle distillate inventories also dropped as net exports increased week over week, reflecting tighter product markets.
