Energy
Thursday, August 15th, 2024 2:57 pm EDT
Key Points
- U.S. crude oil prices rose 1% on Thursday: After two days of losses, the price of U.S. crude oil futures increased to approximately $78 per barrel, rebounding from earlier declines.
- Market volatility due to Middle East tensions: U.S. crude oil prices had surged above $80 per barrel earlier in the week due to fears of a potential conflict between Israel and Iran, but prices pulled back as tensions eased and Iran indicated it might avoid striking Israel if cease-fire talks in Qatar succeeded.
- Impact of global factors and inventory changes: The market was also influenced by OPEC’s reduced demand forecast due to weaker consumption in China, and an increase in U.S. crude stockpiles for the week ending August 9, reflecting the end of the summer driving season.
U.S. crude oil futures experienced a 1% increase on Thursday, recovering from two previous days of decline and approaching $78 per barrel. The price spike earlier in the week saw U.S. crude exceed $80 per barrel, driven by escalating tensions between Israel and Iran, which led the Pentagon to deploy forces to the Middle East. This surge was fueled by fears of direct conflict in the region. However, oil prices began to retract as concerns about a potential war eased, especially following indications that Iran might refrain from attacking Israel if cease-fire negotiations, scheduled for Thursday in Qatar, proved successful.
On Thursday, West Texas Intermediate (WTI) crude for the September contract was priced at $77.80 per barrel, marking an increase of 80 cents or 1.04% from the previous day. Year-to-date, U.S. crude oil prices have risen by 8.6%. Brent crude, the global benchmark, saw its October contract trading at $80.52 per barrel, up 98 cents or 0.99%, with a year-to-date gain of 4.58%. Meanwhile, RBOB gasoline for September was priced at $2.34 per gallon, up more than 2 cents or 1.07%, and has increased by 11.57% year-to-date. Natural gas prices for September were at $2.23 per thousand cubic feet, rising slightly by 1 cent or 0.63%, although it has fallen 11.2% year-to-date.
China’s impact on the market has also been significant this week. OPEC reduced its global oil demand forecast due to weakening consumption in China, the world’s second-largest economy. Additionally, U.S. crude oil stockpiles increased for the week ending August 9, partly due to the nearing end of the summer driving season.
Despite these mixed influences, both U.S. crude oil and Brent crude have shown gains of 1.2% and 2%, respectively, this week. This reflects ongoing uncertainties in the Middle East that continue to affect global oil prices.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/08/15/crude-oil-prices-today.html
