Crude oil futures saw a rebound influenced by escalated geopolitical tensions from the ongoing Russia-Ukraine conflict, particularly after Ukraine's drone strikes on Russian air bases raised supply risk. This surge counteracted OPEC+'s decision to increase oil production by 411,000 barrels per day in July, a move already anticipated by the market. Additionally, declining U.S. fuel inventories and heightened summer gasoline demand supported prices. However, softening Asian imports, notably from China, reflect caution amid economic uncertainties, suggesting that prices may remain volatile due to these conflicting factors and geopolitical risks.
Crude oil futures rebounded due to renewed geopolitical tensions from the Russia-Ukraine conflict, impacting market supply risk, despite OPEC+ raising production.
OPEC+ raising production by 411,000 barrels per day was anticipated by traders, but geopolitical risks may maintain a price support risk premium.
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