The price of oil rose by about 1%, breaking a three-day decline and retreating from the 7-week low reached yesterday. Oil is supported by the weakening of the US currency, as well as expectations that the US may begin to replenish its strategic reserves.
Yesterday, WTI oil prices fell by 3.58% and Brent crude fell by 5.03% amid concerns that continued high interest rates in the United States would limit economic growth this year and negatively affect oil demand. Pressure on prices was also exerted by data indicating an unexpected increase in U.S. crude oil inventories last week.
Since the beginning of the week, the price of WTI oil has decreased by 5%, and Brent - by 6%. Last month, prices soared to their highest level since October following Iran's unprecedented attack on Israel. The price decrease comes amid signs of easing tensions in the Middle East, and expectations of lower demand in fuel markets at the beginning of the summer automotive season in the United States.
Meanwhile, experts said that today's price increase was caused by speculation that if the price of WTI oil falls below $79, the United States will take steps to increase its strategic reserves. Earlier, the United States stated that it intends to replenish the strategic petroleum reserve (SPR) after a sharp reduction in reserves in 2022 and wants to buy oil at a price of $ 79 per barrel or less.
Continued supply cuts from OPEC+ are also likely to support prices. Analysts expect OPEC+ to hold output cuts through the second half of the year as it meets on June 1.