WTI holds on to gains around $82.00 as optimism grows for robust summer driving demand

The tensions in the Middle East and Ukraine are also adding upward pressure on the WTI price. The ongoing conflict in the Middle East and the recent attacks by Ukraine on Russian oil facilities have increased concerns about oil supply disruptions, which are supporting the WTI price. The escalating tensions between Israel and Lebanon, as well as the broader conflict between Israel and Hamas in Gaza, are adding to the geopolitical risks in the region. Moreover, the attacks on Russian oil refineries and terminals by Ukraine have raised fears of potential disruptions to Russian oil exports, further boosting the WTI price.This is further reinforced by the fact that the increased demand for oil due to summer travel is leading to a tightening of supply, which is also supporting the WTI price. JPMorgan reported that global oil demand has risen by 1.4 million barrels per day this month, driven by strong summer travel in Europe and Asia. This increase in demand is leading to a decrease in oil inventories and a tightening of supply, which is pushing the WTI price higher.Overall, the WTI price is currently being supported by a combination of factors, including hopes for a strong summer driving demand, geopolitical risks in the Middle East and Ukraine, and a tightening of supply due to increased demand. However, the stronger US Dollar and the hawkish stance of Fed officials could weigh on the WTI price in the near future. It will be important to monitor how these factors evolve in the coming weeks and how they will impact the WTI price.