Crude oil climbs to highest since April on rising geopolitical risks (NYSEARCA:USO)

Crude oil futures posted back-to-back gains to settle at a seven-week high on Tuesday, with geopolitics returning to influence markets with renewed ship attacks in the Red Sea and Ukrainian drone attacks on Russian ships. Oil and energy infrastructure.

Prices rose after a Ukrainian drone air strike caused a major fire in a fuel tank at an oil terminal in the port of Azov in southern Russia, and Houthi militants in Yemen are believed to have sunk a second ship in the Red Sea.

In addition, Israeli Foreign Minister Israel Katz warned that a decision on an all-out war with Hezbollah would come soon even as US diplomacy tries to avoid a larger war.

“Everywhere you look The geopolitical risk factor is very high“We haven't seen a major impact on supply but that could change very quickly,” Phil Flynn of Price Futures Group said, according to Reuters.

Front-month Nymex crude (CL1:COM) for July delivery has ended +1.5% to $81.57 per barrel, and August Brent crude (CO1:COM) closed as soon as +1.3% to $85.33 per barrel, the highest level since April 30 for both standards.

US natural gas rebounds after four straight sessions of losses, with July Nymex contracts flat (NG1:COM) +4.3% To $2,909/million Btu.

ETFs: (NYSEARCA:use), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI), (UNG), (BOIL), (KOLD), (UNL), (FCG)

US shale drillers will do that Increase their oil production For another 3-4 years before stopping around 2028, which would dampen OPEC+ hopes for a faster decline in US production growth, according to new analysis from HSBC.

Improvements in drilling and fracking technologies will drive expansion and offset recent reductions in drilling rig deployments, analysts at the bank wrote in a note titled “U.S. Shale Undervaluation at Your Peril.”

US shale fields are expected to raise production by about 400,000 barrels per day next year, followed by slower growth, according to the report.