WTI crude futures rebounded to over $77 per barrel on Monday after a 2.5% decline the previous week, due to the strengthening of physical markets in the US and disruptions in exports from an oil field in Libya. US physical crude prices have been rising in recent weeks, reaching the highest levels of the year. Refineries with strong margins have been purchasing more barrels, while foreign buyers are turning to American crude to avoid shipping issues in the Red Sea. Additionally, protests have led to the closure of exports from an oil field in western Libya and a subsea natural gas link to Italy. Investors are eagerly anticipating US inflation data that will provide insight into the Federal Reserve’s potential interest rate cuts. Despite tensions in the Middle East and supply restrictions by OPEC+, the oil market has remained stable, with increased production from countries outside the group like the US balancing out these factors.
