- Oil continues to rally, with prices now at the highest level since April
- WTI is trading around $82.20/Bbl as of 8:25 AM CST and is up nearly $10 over the last two weeks
- The API is forecasting a US inventory build of 2.3 MMBbls ahead of the official EIA release
- Shipping costs rise sharply after drone sinks coal carrier in the Red Sea (BBG)
- The British Navy said on Tuesday that a bulk carrier transporting coal was sunk by a drone launched by Houthi militants in the Red Sea
- This, and other attacks on merchant vessels in the region, have led to higher insurance costs
- Higher risks associated with shipping have led to higher geopolitical risk premium in crude prices, as a significant amount of oil is transported through the Red Sea
- July Fourth travel expected to hit record, boosting product demand (BBG)
- A record of almost 71 million Americans are expected to travel over the July Fourth holiday period next month
- An increase in travel would be a reassuring signal for some traders expecting crude and product markets to tighten this summer
- Regarding gasoline demand, Patrick De Haan of GasBuddy said, “We usually see demand peak for gasoline sometime in late July, so there’s still some opportunity,” but also stated that “it does look like we are running a little bit lower than last year”
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