Oil Climbed on Geopolitical Risks and Weaker Dollar – Rigzone News

 | Monday, June 24, 2024 | 3:44 PM EST

Oil climbed, with a softer dollar and rising tensions with Russia providing support. 

West Texas Intermediate advanced 1.1% to top $81 a barrel, rebounding from Friday’s decline. The US dollar fell, making commodities priced in the currency more appealing. Adding further bullish pressure, Russia blamed the US for a Ukrainian missile strike on occupied Crimea and warned of unspecified “consequences” for the attack. The European Union also sanctioned 27 ships linked to Russia

Crude remains on track for a monthly gain. The prompt spread for American crude has strengthened this month in a bullish backwardation structure, signaling tightening supply amid signs of rising US gasoline demand and healthy air travel volumes.

“Gasoline posted its first draw of the summer driving season in last week’s report, and crude oil posted a storage draw on bullish import/export dynamics,” Robert Yawger, executive director of energy futures at Mizuho Securities USA, said in a note Monday. “Unfortunately, the report was so good that it will be hard to repeat the feat again this week.”

Prices:

• WTI for August delivery climbed 1.1% to settle at $81.63 a barrel in New York.
• Brent for August settlement rose 0.9% to $86.01 a barrel.

Geopolitical risks from the Middle East also have the potential to affect prices in the weeks ahead. In Iran, snap elections will be held on Friday following the death of Ebrahim Raisi in a helicopter crash last month. The vote comes at a time of heightened tensions between Iran and the West, with Tehran mobilizing a regional network of proxy militias to target Israel. Yemen’s Houthi militants have also ramped up hostilities recently