Overview

• Oil prices have surged to a four-month high, driven by Ukrainian drone attacks on Russian refineries, OPEC+ production cuts, and strong demand indicators from the US and China.
• Brent crude traded near $87 a barrel, while West Texas Intermediate was below $83, signaling a tight global oil market.
• The International Energy Agency forecasts a supply deficit for the year, as global demand outpaces production, partly due to OPEC+ curbs and shipping disruptions in the Red Sea.
• Investors and analysts anticipate further price increases, with the Energy Select Sector SPDR ETF surging more than 7% in the past month.
• Geopolitical tensions and the outcome of the upcoming Federal Reserve meeting are closely watched for their potential impact on oil prices.