U.S. Crude Oil Prices Surge Amid Supply Deficit Forecast and Geopolitical Tensions

Oil prices rise as the International Energy Agency forecasts a supply deficit for 2024, compounded by Ukrainian attacks on Russian refineries.

The International Energy Agency now forecasts a slight oil supply deficit for 2024, revising global demand growth upward by 110,000 barrels per day.
U.S. West Texas Intermediate crude rose to $80.58 a barrel, while Brent crude reached $84.71 a barrel, following Ukrainian drone attacks on Russian oil refineries.
A surprise drop in U.S. crude stockpiles indicates strengthening demand, further underpinning oil prices.
Geopolitical tensions escalate as Ukrainian drone strikes target Russian refining facilities, causing significant damage and operational disruptions.
Morgan Stanley's oil strategist predicts the market could be caught off guard by a crude price spike this summer, citing potential supply constraints and strong demand.