At 11:55 GMT, Light Crude Oil Futures are trading $68.47, up $0.14 or +0.20%.
Supply: OPEC+ Adds Barrels, But Geopolitics Tighten Flows
OPEC+ is pushing ahead with a 548,000 barrels per day supply increase in August as voluntary cuts unwind, while the UAE moves to a higher quota. Yet, markets have absorbed these barrels without heavy inventory builds, pointing to steady demand.
The United Arab Emirates’ energy minister said recent supply additions haven’t triggered major inventory surges, showing markets “needed those barrels.” DBS Bank analysts echoed this, noting oil prices have held up despite accelerated supply, reinforcing that markets remain “thirsty” for barrels.
Meanwhile, the Red Sea saw fresh attacks on shipping by suspected Houthi militia forces, including a cargo ship sinking that killed at least four crew members. This has renewed geopolitical risk, injecting uncertainty into shipping lanes that are critical for global crude flows.
Demand: U.S. Travel and Slower Production Keep Bulls Engaged
Demand signals are holding firm. Strong travel during the U.S. July 4 holiday weekend boosted fuel consumption, supporting near-term demand expectations during the summer driving season.
The Energy Information Administration also forecast lower U.S. production in 2025 as drilling slows, which may tighten domestic supply down the road. Traders see this as a supportive factor in the near term while balancing broader macro risks.
