West Texas Intermediate (WTI) crude oil futures climbed to approximately $68.4 per barrel on Thursday, marking the highest point in over two months. This increase was largely driven by escalating tensions between the United States and Iran, which have raised concerns about potential supply disruptions. The US has announced plans for a partial evacuation of personnel in the Middle East following threats from Iran to target US bases should nuclear negotiations collapse.
Adding to this upward trend, the US and China reached a framework and implementation plan on Tuesday aimed at alleviating tariff and trade frictions, fostering hope for increased energy demand from the globe's two largest oil consumers. On the economic side, US consumer inflation figures were weaker than expected, bolstering speculation that the Federal Reserve might initiate interest rate cuts by September, which could, in turn, enhance economic growth and energy consumption.
Moreover, new data from the US Energy Information Administration (EIA) indicated a decline in crude oil inventories by 3.6 million barrels for the week ending June 6, surpassing predictions of a 2 million-barrel reduction and suggesting robust demand.
