As expected, oil prices continue to rise and, most likely, in the near future to $105-110 per barrel, although at the moment they dropped to $99.5. If we count from the beginning of the week, the standard grade of oil has already gained more than 8.5%.

Why oil prices are rising

The main newsmaker of the whole week was, of course, the Houthis, who definitely damaged one tanker in the Red Sea and, according to unconfirmed information, hit two more.

How strategic reserves affect the market

At the same time, with the release of reserves onto the market, which was done in the first wave of the crisis in March, things are worse. Since March, the organization’s member countries have produced about 290 million barrels, with about 1 billion remaining in reserves.

The condition of the US Strategic Petroleum Reserve

The situation with the American strategic reserve, the second largest in the world, is also sad: at the end of June they reached 325 million barrels, the lowest level since 1983. For comparison, in September 2021, the reserve volume was about 620 million barrels. After large-scale cuts in 2021-2023, some oil was returned, but the total volume still remains almost half of its previous level.