U.S. crude oil futures on Monday rose ahead of the Fourth of July holiday, after booking a 6% gain last month on the back of fears of a wider Middle East war and expectations of rising summer fuel demand.
Though oil prices have been steadily rising, the average price for a gallon of gasoline stands at $3.49 nationwide, down about 5 cents from last month.
Here are today’s energy prices:
- West Texas Intermediate August contract: $82.04 per barrel, up 50 cents, or 0.61%. Year to date, U.S. oil has gained 14.5%.
- Brent September contract: $85.58 per barrel, up 58 cents, or 0.68%. Year to date, the global benchmark is ahead by 11.1%.
- RBOB Gasoline August contract: $2.53 per gallon, up 1.43%. Year to date, gasoline is up 20.5%.
- Natural Gas August contract: $2.55 per thousand cubic feet, down 1.92%. Year to date, gas is ahead by 1.4%.
Oil market speculators have added long positions, betting on higher prices as tensions between Israel and the Iran-backed Hezbollah militia in Lebanon have “proven to be a major driver of the strong price action of late,” commodity strategists with TD Securities told clients in a note on Friday.
“However, this increase in risk premium is only likely to support prices, rather than fuel a renewed rally,” the TD strategists said.
JPMorgan, meanwhile, is forecasting a global oil liquids deficit of 1 million barrels per day, or bpd, in the third quarter and a large 1.9 million bpd drawdown in August.