West Texas Intermediate (WTI) US Crude Oil prices have surged above $80.00 per barrel, despite a recent increase in American Petroleum Institute (API) Weekly Crude Oil Stocks. Energy traders seem optimistic about a potential rise in demand for Crude Oil during the summer months, which could help balance out the excess supply in the global market.
The API reported a 2.264 million barrel increase in US Weekly Crude Oil Stocks for the week ending June 14. This rise in stocks comes after a previous week that saw a drawdown of 2.428 million barrels. While Distillate Stocks also increased by 538K barrels, Gasoline Stocks Change decreased by 1.077 million barrels, although less than the previous week’s drawdown of 2.549 million barrels. The total supply of US Crude Oil has now surpassed 17 million barrels since the beginning of January 2024.
Despite concerns about geopolitical instability, such as the recent Ukranian drone strike on a Russian fuel tank facility and ongoing tensions in the Middle East, energy markets remain focused on the potential increase in demand during the summer. This optimism has helped push WTI prices higher, with the commodity surpassing the 200-day Exponential Moving Average and breaking a descending trendline from previous peak bids.
Looking ahead, WTI prices could continue to rise if the current bullish momentum persists. However, a failure to sustain this upward trend could see prices retreat back towards the $76.00 region. Investors should exercise caution and conduct thorough research before making any investment decisions in the volatile Crude Oil market.
In conclusion, while WTI prices have climbed above $80.00 per barrel, the market remains sensitive to various factors, including geopolitical events and demand fluctuations. Traders should stay informed and monitor developments closely to navigate the ever-changing landscape of the energy market.