Oil prices surged above $64.50 on Tuesday, with West Texas Intermediate (WTI) trading at $64.60, as Saudi Arabia is expected to raise its August crude oil prices for Asian buyers to the highest in four months.
The move comes amid a mix of factors, including tensions in the Middle East and improved market sentiment following US trade officials scaling back their tariff goals. However, the impact may be restrained by increasing interest-rate uncertainty in the US, with President Trump criticizing Federal Reserve Chair Jerome Powell as being “too late” to address high interest rates.
The Saudi Arabia’s expected price hike is attributed to a solid summer fuel demand and rising oil prices during the Middle East conflict. The Reuters survey suggests an increase of 50-80 cents per barrel, from $1.70 to $2 a barrel.
US employment data, set to release soon, may influence the Federal Reserve’s interest rate decision in July. The uncertainty surrounding the data, along with the Trump Administration’s tax and spending bill that could add $3.3 trillion to the national debt, adds to market volatility.
While WTI oil prices have gained ground for the second successive session, traders are adopting caution due to these factors.
Source: https://www.mitrade.com/insights/commodity-analysis/oil-news/fxstreet-USOIL-202507011701