Crude oil, alongside the entire energy sector, had a healthy high start as further strength in the crude complex was shown. Fed Chairman Powell’s news conference at 2 pm is the next big indicator investors are looking for. At this time, the Federal Reserve is not expected to take any policy actions. The price of oil has been on the rise for a fifth day, climbing towards $75 a barrel
The inventory draw for crude oil is stronger than expected, as crude inventories fell by 7.4 million barrels in the week of June 11. In the meantime, the refining utilization rose to 92.6%, which is the highest since January 2020, before the pandemic started. Brent has seen a 44% increase this year, as OPEC leads a cut to the oil supply worldwide. Major oil traders suspect the oil price will remain above $70 for the foreseeable future.
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