Oil Prices Rise on Seasonal Demand Hopes and U.S. Reserve Plans

Oil prices climbed further on Tuesday, extending gains from the previous day. Brent crude edged up to $81.91 per barrel, with U.S. West Texas Intermediate reaching $78.05.

The rally was driven by expectations of increased summer fuel demand and potential U.S. crude purchases for its strategic petroleum reserve, although gains were capped by a stronger dollar.

The U.S. Energy Secretary’s announcement to expedite strategic reserve replenishment added to market optimism, targeting purchases at around $79 per barrel.

Goldman Sachs analysts predicted Brent prices to hit $86 per barrel in the third quarter, buoyed by robust summer transport demand.

Investor attention remained on key economic indicators, including the U.S. consumer price index data for May and the Federal Reserve’s policy meeting outcomes.

Reports from industry groups like the American Petroleum Institute and the Energy Information Administration are awaited, providing insights into crude oil and product inventories.

As the market awaits crucial supply and demand data, optimism prevails amidst evolving market dynamics and geopolitical uncertainties.