Oil rises due to demand for US travel and growth in the Middle East

On the New York Mercantile Exchange (Nymex), WTI oil for September delivery rose 2.77% (US$2.03) to end at US$75.23 a barrel, while Brent for March delivery rose 2.42% (US$) on the Intercontinental Exchange (ICE). 1.85), US$ 78.33 per barrel

Oil futures rose in the session, extending yesterday’s modest gains. Demand for U.S. travel and commodity strength follow the development of conflict in the Middle East.

On the New York Mercantile Exchange (Nymex), WTI oil for September delivery rose 2.77% (US$2.03) to end at US$75.23 a barrel, while Brent for March delivery rose 2.42% (US$) on the Intercontinental Exchange (ICE). 1.85), US$ 78.33 per barrel.

Analyst Dennis Kiesler from BOK Financial said, “I think demand for travel in the US is still strong and higher than the market expected. Hence, consumption of petroleum-derived fuels increases, leading to an increase in commodity prices as supply needs to meet demand.

Investors are keeping an eye on developments in the Middle East conflict. The Oanda report released today argues that any conflict in the region could affect oil supplies and prices. On the other hand, additional worries about a recession in the US or a global economic slowdown could “further reduce” commodity prices, according to the advisory.

Earlier, the US Department of Energy (DoE) reported that the country’s oil stocks fell by 3.73 million barrels during the week, compared to a forecast drop of 500,000 barrels, but the reaction to the data from the market was fearful.