August WTI crude oil (CLQ25) today is up +0.59 (+0.88%), and August RBOB gasoline (RBQ25) is up +0.0243 (+1.15%).

Oil prices today recovered from early losses and rallied to 2-week highs after Saudi Arabia raised prices for its main crude grade for buyers in Asia next month by more than expected.  Crude prices added to their gains on elevated tensions in the Middle East after Houthi rebels attacked a ship sailing through the Red Sea, which could attract retaliatory US military strikes on the Houthi rebels.   Crude prices initially moved lower today due to a stronger dollar and after OPEC+ raised its crude production level more than expected on Sunday.

Crude prices rose today after Saudi Arabia’s state-owned producer Aramco raised prices for its Arab Light crude for buyers in Asia next month by $1 a barrel, above expectations of a 65-cent-a-barrel increase.

Heightened tensions in the Middle East are supportive for crude prices after Yemen’s Houthi rebels claimed responsibility for an attack on a ship sailing through the Red Sea on Sunday, their first strike on merchant shipping this year.

Concern about a global oil glut is negative for crude prices.  On Sunday, OPEC+ agreed to raise its crude production by 548,000 barrels per day (bpd) beginning August 1, exceeding expectations of a 411,000 bpd increase.   Saudi Arabia also stated that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and penalize overproducing OPEC+ members, such as Kazakhstan and Iraq.  OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production by September 2026.  On May 31, OPEC+ agreed to a 411,000 bpd increase in crude production for July, following the same 411,000 bpd hike for June.  June crude production rose +360,000 bpd to a 1.5-year high of 28.10 million bpd.

Oil prices continue to be undercut by tariff concerns ahead of the July 9 deadline when President Trump says he will implement reciprocal tariffs on imports from any countries that haven’t yet reached a trade deal with the Trump administration.

An increase in crude oil held worldwide on tankers is bearish for oil prices.  Vortexa reported today that crude oil stored on tankers that have been stationary for at least seven days rose by +3.6% w/w to 79.55 million bbl in the week ended July 4.