Crude oil prices rebounded significantly in the second week of July 2025, with Brent gaining 1.94% and WTI 1.9%, despite an announced OPEC+ output increase for August and renewed US tariff threats. This surge was primarily driven by robust demand signals and acute market tightness. Increased US gasoline demand for the driving season and high refinery utilization (93.9%) fueled consumption. Supply concerns intensified as US crude inventories saw a 3.9-million-barrel drawdown, now 8% below the five-year average. Compounding this, drone attacks cut Iraq's Kurdistan production by 140,000-150,000 b/d, while renewed Houthi attacks in the Red Sea forced costly reroutes.
After a period of two consecutive declines, crude oil prices experienced a notable rebound during the second week of July xxxx, signaling a shift in market sentiment. This upward movement came despite a backdrop of lingering global economic uncertainties and an announced increase in output from OPEC+ by xxx,xxx barrels per day in August.
Key Takeaways:
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The demand for downstream gasoline rose during the US driving season.
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According to the IEA, there were x.x million fewer barrels of crude oil in stock.
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Crude oil deliveries declined due to Houthi attacks on the Red Sea.
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For the eleventh consecutive week, the number of oil and gas rigs in the United States was reduced.
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In August, OPEC+ pledged to boost crude oil production by xxx,xxx barrels per day.
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By August xst, President Donald Trump promised to impose severe tariffs.
Crude oil futures are expected to...
