The escalating geopolitical unrest in the Middle East, particularly the tensions between Israel and Rafah, has significantly influenced many commodities, including crude oil. Currently, crude oil prices are trading at a four-week high, surpassing $84 a barrel. This surge is a direct result of the mounting uncertainty and concerns in the Middle East.
Also, there is the summer demand season in the US. Well, we just had a long weekend, and the numbers we are seeing are the highest in a couple of decades. This season is going to be a demand boost in the US markets. Also, there is going to be a meeting of OPIC and allies on June 2.
Crude Oil Prices
While they are discussing production policy, with the expectation that the 2.2 million barrels per day cut will continue even after June, it is also related to the US inventory data, which came out today with the expectation that the numbers may decline.
On a positive note, a recent UBS report predicts a rise in crude oil prices, coupled with a healthy global oil demand expected to increase by 1.5 million barrels. Additionally, other commodities are also showing promising trends, with a 5 million barrel gain in metals and silver trading at an 11-year high. Copper prices are also on the rise, indicating a favourable market condition for most commodities in Asia.
