Crude Oil Prices Surge Amid Geopolitical Tensions and Rising Summer Demand

U.S. crude oil futures rose over 2% ahead of the Fourth of July holiday, continuing a trend that saw a 6% increase last month. This upward movement is fueled by fears of a broader Middle East conflict and expectations of heightened summer fuel demand. As of Monday, West Texas Intermediate (WTI) for August delivery closed at $83.38 per barrel, a 16.3% increase year-to-date, while Brent crude for September delivery rose to $86.60 per barrel, up 12.4% this year. Despite the steady rise in oil prices, the average price of gasoline stands at $3.49 per gallon in the US nationwide, down 5 cents from last month. However, with AAA forecasting a record 60 million drivers on the roads for the holiday, pump prices may see an uptick. Speculators are betting on higher prices, citing tensions between Israel and Hezbollah as a significant driver of recent price actions. Additionally, the hurricane season poses a risk to Gulf Coast oil infrastructure, further impacting prices. The government of India hiked windfall tax on domestically produced crude oil to ₹6,000 per tonne, from ₹3,250 per tonne, with effect from July 2, PTI reported. The tax, levied in the form of Special Additional Excise Duty (SAED), has been kept at ‘nil’ on the export of diesel, petrol, and jet fuel or air turbine fuel (ATF). As global oil trades near two-month highs, market strategists suggest that Brent could soon retest the $90 level, emphasizing the near-term upward trend in crude oil prices. PolyMart does not provide any assurances or guarantees regarding the reliability, accuracy, completeness, or quality of the information available on its website, app, or through any of its services. Therefore, the company is not responsible for any errors, omissions, losses, or damages that may result from the use of the website or app. It is advisable for users to exercise caution and independently verify any information obtained from these sources before relying on it for any purpose.