Fundamental Comment

Oil prices climb to four-week high

Oil prices climb to four week high

Crude oil resumed its strong rebound on Wednesday, rising for the 7th consecutive session, to record its highest level in four weeks, amid expectations of a drop in US crude stockpiles ahead of the US government EIA report,

in addition to escalating geopolitical tensions in the middle east region.

U.S. crude oil futures rose to $59.23 a barrel, the highest level since May 30, after it hit a session peak at $59.35 a barrel.

Brent crude has also risen today to trade at $66.10 a barrel, while it scored his highest level in four weeks at $66.25 a barrel.

US crude stock data released on Tuesday by the US Petroleum Institute (API) showed a drop in stockpiles of 7.5 million barrels in the week ended June 21, compared to forecasts of 2.5-million-barrel increase.

The EIA report due on Wednesday may show a fall in US crude inventories of 2.7 million barrels after a decline of 3.1 million barrels a week before.  

Meanwhile, there are discussion between Saudi crown prince and the Russian president as they will meet at the G20 summit this weekend, where they will tackle the extension of the production cut agreement adopted by the Organization of Petroleum Exporting Countries (OPEC) and other major producers.

The energy market is waiting for the next week's meeting, which will see OPEC and its allies discuss the production policy they will apply to the end of the year.

The dollar index soared for a second straight session to hit a high of highest level 95.82, compared to the session’s open at 95.66.

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