U.S. crude oil futures rebounded on Wednesday, driven by a stock market rally. The Dow Jones Industrial Average surged more than 400 points, and the S&P 500 gained 1.3% after a challenging start to the week marked by recession fears. The Energy Information Administration reported that U.S. crude oil inventories dropped by 3.7 million barrels last week, while gasoline stocks saw an increase of 1.3 million barrels.
Wednesday’s energy prices saw notable movements:
– West Texas Intermediate (WTI) September contract rose to $75.65 per barrel, an increase of $2.45 or 3.35%. Year-to-date, U.S. crude oil has appreciated by about 5.5%.
– Brent October contract climbed to $78.70 per barrel, up $2.22 or 2.86%. The global benchmark is up roughly 2% for the year.
– RBOB Gasoline September contract increased to $2.37 per gallon, up nearly 5 cents or 1.99%, and is up 12.8% year-to-date.
– Natural Gas September contract rose to $2.08 per thousand cubic feet, an increase of 7 cents or 3.48%, although it is down about 17% for the year.
Despite recession fears weighing on the oil market, escalating tensions in the Middle East and production cuts by OPEC+ have helped to support prices. A Goldman Sachs note suggests that Brent crude should hold a floor of $75 per barrel, bolstered by resilient oil demand in the West and steady demand in India.
In geopolitical developments, Israel is preparing for a potential retaliatory strike from Iran following the assassination of Hamas leader Ismail Haniyeh in Tehran last week. Diplomatic pressure and the deployment of U.S. military assets are reportedly influencing Iran’s decision-making regarding a major strike on Israel, according to White House officials.
For further insights into the energy market, don’t miss these updates from CNBC PRO.
Original Story https://www.cnbc.com/2024/08/07/crude-oil-prices-today.html
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