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26.06.2024

Oil prices rose moderately despite the strengthening of the US dollar

Oil rose by about 0.5% after yesterday's drop, helped by expectations of a reduction in oil reserves in the third quarter, as well as geopolitical tensions in the Middle East.

Further price growth was limited by the positive dynamics of the US currency. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.21% to 105.83.

Meanwhile, the American Petroleum Institute (API) reported yesterday that U.S. crude oil inventories rose by 914,000 barrels last week. Official data from the Energy Information Administration (EIA) will be published today at 14:30 GMT. Economists expect the EIA report to reflect a reduction in oil reserves by 2.6 million barrels.

“The general opinion of market participants is that demand for petroleum products will increase in the summer. Geopolitics, namely the Houthi attacks on ships in the Red Sea and the intensification of hostilities between Israel and Hezbollah in Lebanon, are also seen as a factor in supporting oil prices," oil broker PVM experts said.

"Key oil market indicators are signalling that crude's rebound is reflecting a stronger underlying physical market," JP Morgan analysts said.

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