Oil up on Tuesday

Oil prices went up to a two-month high, driven by rising Middle East tensions and the onset of the Atlantic hurricane season. Brent crude neared $87 per barrel, and West Texas Intermediate (WTI) topped $83.

Hurricane Beryl, now a Category 5 storm, made landfall on Carriacou Island and is heading towards Jamaica. This has contributed to oil’s recent gains, alongside controlled OPEC+ supply and increased summer travel in the northern hemisphere. However, concerns about China’s slow recovery may limit further price rises.

Market strategist Yeap Jun Rong noted that the breakout could push Brent to retest April 2024’s $90 high. Increased trading in crude futures has raised implied volatility, with money managers investing heavily in oil and refined products.

Attribution: Bloomberg.