Oil inches up on US demand strength; fading Mideast supply risks offset gains
(Reuters) - Oil prices edged higher on Thursday as crude...
(Reuters) - Oil prices edged higher on Thursday as crude inventories in the United States fell on higher demand as summer driving season ramped up, while concerns over Middle East supply risks eased, offsetting some gains.
Brent crude futures settled up 5 cents, or 0.07%, higher to $67.73 a barrel. U.S. West Texas Intermediate crudegained 32 cents, or 0.49%, to $65.24 a barrel.
Both benchmarks climbed nearly 1% on Wednesday, recovering from losses earlier in the week after data showed resilient U.S. demand. Brent futures were trading below their close of $69.36 on June 12, the day before Israel started airstrikes on Iran.
The U.S. driving season had started slowly but was now stoking demand, ANZ analysts said.
"The market is starting to digest the fact that crude oil inventories are very tight all of a sudden," said Phil Flynn, senior analyst with the Price Futures Group.
U.S. crude oil and fuel inventories fell in the week to June 20 as refining activity and demand rose, the Energy Information Administration said on Wednesday.
Crude inventories fell by 5.8 million barrels, the EIA said, exceeding analysts' expectations in a Reuters poll for a 797,000-barrel draw.
S&P 500, Nasdaq book big gains, barely miss record closes
Stocks closed sharply higher after a cliff-hanger session...
Stocks closed sharply higher after a cliff-hanger session on Thursday, in which the Nasdaq Composite and S&P 500 both briefly surpassed their prior closing highs but ultimately came up short in the final moments of trade.
The S&P 500 index gained 48.86 points, or 0.8%, closing at 6,141.02. It needs to close above 6,144.15 for a new record.
The Nasdaq Composite rose 194.36 points, or 1%, ending at 20,167.91. Its level to beat is 20,173.89.
The Dow Jones Industrial Average gained 404.41 points, or 0.9%, finishing at 43,386.84. That was 3.6% off its record close from Dec. 4, 2024, according to Dow Jones Market Data.
Stock-market bulls have been looking to seize fresh records since oil prices began retreating and Israel and Iran agreed to a cease-fire. Bond yields also have been easing, helping fuel a more risk-on tone on Wall Street.
What the Iran conflict means for gas prices this summer
History shows that turmoil in the Middle East usually means a stateside...
History shows that turmoil in the Middle East usually means a stateside spike in gas prices. But even with the US and Israel launching strikes against Iran, experts believe there’s no reason to turn your car around this summer.
The average cost for a gallon of regular gas is currently $3.21—that’s ~23 cents cheaper than it was a year ago, according to the US Energy Information Administration. In fact, oil prices are lower now than when the Israel-Iran conflict began on June 10, and they may hold steady for awhile:
🟢Unlike in similar situations that led to more expensive gas, the US has produced much more oil since the shale revolution of the early 2010s, creating an abundance that should prevent pain at the pump.
🟢The Persian Gulf region is also less willing than it used to be to withhold its oil to spite the US for its support of Israel, per the Washington Post.
Of course, this can all change in an instant if the tenuous ceasefire is broken, or if there’s a disruption in the body of water that everyone suddenly became an expert on two weeks ago—the Strait of Hormuz.
Patrick De Haan, head of petroleum analysis at GasBuddy, told the Wall Street Journal that he expects gas prices to hold between $3 and $3.20 this summer.
According to the Wall Street Journal, Shell is “holding early-stage...
According to the Wall Street Journal, Shell is “holding early-stage talks” to buy its rival in what would be the biggest oil deal since the merger of Exxon and Mobil in 1999. CNBC, however, reported that it’s unlikely Shell would purchase all of BP in any potential deal, and Shell denied that talks were happening at all, calling the WSJ report “market speculation.” If a deal eventually goes through, it would combine Shell and its $210 billion market cap with some or all of BP’s $82 billion, creating another energy juggernaut to compete with Saudi Aramco, ExxonMobil, and Chevron. Shell’s stock dropped on the news, while BP’s ticked up.
Under the new agreement, each nation in the Western military alliance...
Under the new agreement, each nation in the Western military alliance will more than double their defense spending from 2% of GDP to 5% by 2035, the group announced at its summit in the Netherlands yesterday. The move is seen as a bulwark against the threat from Russia, as well as a response to growing tensions in the Middle East. It’s also considered a win for President Trump, who has long pressured NATO allies to spend more on defense. Trump has repeatedly threatened to pull the US out of NATO, but this week appeared to affirm the country’s continued involvement. He also said the US will meet with Iran next week amid its fragile ceasefire with Israel.
