Brent crude has rallied to $86 per barrel before U.S. Independence Day, fueled by a major draw in crude inventories, optimism about travel demand, and the risk of outages in the Gulf of Mexico as hurricane Beryl barrels over Jamaica.
According to Oilprice.com, traders have begun to unwind short positions at a rapid pace while adding to long positions. Crude futures could see support from speculative buying if OPEC+ commitment to output cuts remains firm, resulting in higher prices for longer.
Also, rising crude prices combined with tensions in the Middle East form a bullish cocktail for energy companies.
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