Oil prices are holding steady near their highest levels since late April, reflecting market optimism for strong summer fuel demand and supply concerns. On Friday, Brent crude futures increased marginally by 8 cents to $87.51 per barrel, and U.S. West Texas Intermediate (WTI) crude futures rose by 10 cents to $83.98 per barrel. Despite thin trading due to the U.S. Independence Day holiday, oil prices have risen this week. The U.S. Energy Information Administration (EIA) reported a significant draw of 12.2 million barrels in inventories last week, surpassing analyst expectations.
On the supply side, Russian oil producers Rosneft and Lukoil announced they will reduce oil exports from the Black Sea port of Novorossiisk in July. In Canada, Suncor Energy shut down its 215,000 barrel-per-day Firebag oil sands site in Alberta due to nearby wildfires. Additionally, Hurricane Beryl threatens oil operations as it approaches Mexico's Yucatan peninsula, although U.S. Gulf platforms may not face severe impacts if the storm weakens as expected.
Saudi Aramco has reduced prices for its Arab Light crude sold to Asia, adjusting to growing non-OPEC supply. Meanwhile, major U.S. oil companies have evacuated offshore platforms as a precautionary measure against the hurricane. Despite these challenges, market sentiment remains bullish, with analysts predicting further gains in crude prices.