Crude oil benchmarks are poised for their most significant weekly increase in over a month, with both Brent and WTI up sharply as escalating hostilities between the U.S. and Iran fuel concerns over potential Middle East supply disruptions.
U.S. commercial crude oil inventories fell by 4.5 million barrels last week, a much steeper decline than analysts had anticipated, according to data from the Energy Information Administration. The report showed a mixed picture for refined products, with a surprise build in distillates.
Gasoline refining margins in Northwest Europe jumped to nearly $60 per barrel on Wednesday, nearing the record levels of the 2022 energy crisis, as tight supplies and low inventories continue to pressure the market.
European wheat futures climbed to a new contract high on Wednesday, driven by escalating attacks on port infrastructure in the Black Sea that have stoked fears of prolonged disruptions to Ukrainian and Russian grain shipments.
Gold prices rallied sharply on Thursday, with futures rising over 2%, as a weaker U.S. dollar and a retreat in Treasury yields renewed investor demand for the precious metal ahead of a key U.S. jobs report.
U.S. crude oil output edged up to 13.79 million barrels per day in June, while petroleum product demand saw a stronger increase to 20.74 million bpd, according to the U.S. Energy Information Administration.
Raw sugar futures on the Intercontinental Exchange (ICE) surged to their highest level in 16 months, driven by tightening supplies in India and anticipated harvest disruptions in top producer Brazil.
Profit margins for European diesel remained near historic highs on Wednesday, as supply concerns from Russia offset the impact of an unexpected increase in U.S. distillate stockpiles.
Differentials for West African crude oil remained unchanged as buyers showed resistance to high premiums, which were recently pushed up by elevated freight costs and supply concerns.
