U.S. crude oil futures staged a comeback Wednesday as the stock market rallied.
The Dow Jones Industrial Average rose more than 400 points while the S&P 500 gained 1.5% after steep losses earlier in the week on recession fears.
Crude oil stocks in the U.S. fell by 3.7 million barrels last week, while gasoline inventories rose by 1.3 million barrels, according to the Energy Information Administration.
Here are Wednesday’s energy prices:
- West Texas Intermediate September contract: $75.25 per barrel, up $2.05, or 2.8%. Year to date, U.S. crude oil has gained about 5%.
- Brent October contract: $78.42 per barrel, up $1.94, or 2.54%. Year to date, the global benchmark is ahead 1.87%.
- RBOB Gasoline September contract: $2.35 per gallon, up nearly 3 cents, or 1.2%. Year to date, gasoline is up 11.9%.
- Natural Gas September contract: $2.08 per thousand cubic feet, up nearly 8 cents, or 3.78%. Year to date, gas is down about 17%.
Recession fears had also put downward pressure on the oil market, but escalating tensions in the Middle East and ongoing production cuts by OPEC+ have provided a floor for prices.
Brent should maintain a floor of $75 per barrel and will find support as the risk of a recession is limited and oil demand is resilient in the West and solid in India, according to a Goldman Sachs note this week.
Israel has been bracing for an expected attack from Iran after the assassination of Hamas leader Ismail Haniyeh in Tehran last week. White House officials told The Washington Post that Iran may be reconsidering a major strike on Israel amid diplomatic pressure and the dispatch of U.S. military assets to the region.