Oil Steadies on Solid Summer Demand Prospects, Geopolitical Tensions
By
Giulia Petroni, Dow Jones Newsires
Oil prices are broadly steady after rising 1% in the previous trading session on prospects of stronger demand over the summer and heightened geopolitical risks in Eastern Europe and the Middle East.
Further gains are capped by investors’ cautiousness ahead of PCE data—the Federal Reserve’s preferred measure of inflation—and concerns over the demand outlook in China.
Meanwhile, Ukrainian missile strikes on Russian oil infrastructure and fears of a full-scare war between Israel and Iran-backed militia group Hezbollah continue to uphold prices.
According to ANZ analysts, the market also remains on edge ahead of elections in Iran later this week, as a “more hard-line” president could result in more direct confrontations with the U.S., Israel and Saudi Arabia.
Brent crude and WTI were both flat at $85.10 and $81.60 a barrel, respectively.