Oil prices have been on the rise for the past four days, thanks to positive economic news from the US and escalating tensions in the Middle East. The increase in prices is due to the strong US economic data, which has eased concerns about a possible recession. At the same time, fears of potential retaliation from Iran and Hezbollah have added to the uncertainty in the market.
The geopolitical situation in the Middle East is volatile, and any escalation in tensions could disrupt global oil supplies. Traders are worried about possible attacks on oil infrastructure, which could lead to a decrease in crude availability and drive prices up. This uncertainty is compounded by concerns about production levels from major producers like OPEC+, who have been carefully managing output to support prices.
In addition to geopolitical factors, comments from US central bankers about a potential interest rate cut due to cooling inflation have also contributed to the increase in oil prices. The market is now waiting for the upcoming US Producer Price Index (PPI) data, with expectations of a drop to 0.1% in July from 0.2% in June.
Overall, the outlook for oil prices remains uncertain, with tensions in the Middle East and economic indicators playing a significant role in determining the future direction of the market. Traders and investors will be closely monitoring developments in both areas to assess the potential impact on oil prices in the coming days.