U.S. crude oil has risen to more than $75 per barrel, after following equity markets lower earlier in the week on recession fears.The Dow Jones Industrial Average rose more 400 points while the S&P 500 gained 1.3% after steep losses earlier in the week on recession fears.
Crude oil stocks in the U.S. fell by 3.7 million barrels last week, while gasoline inventories rose by 1.3 million barrels, according to the Energy Information Administration.September contract: $2.08 per thousand cubic feet, up 7 cents, or 3.48%. Year to date, gas is down about 17%. Recession fears had also put downward pressure on the oil market, but escalating tensions in the Middle East and ongoing production cuts by OPEC+ have provided a floor for prices.
Brent should maintain a floor of $75 per barrel and will find support as the risk of a recession is limited and oil demand is resilient in the West and solid in India, according to a Goldman Sachs note this week. Israel has been bracing for an expected attack from Iran after the assassination of Hamas leader Ismail Haniyeh in Tehran last week. White House officialsthat Iran may be reconsidering a major strike on Israel amid diplomatic pressure and the dispatch of U.S. military assets to the region.An options trade on an oil giant before earnings with crude on the move higher