NYMEX WTI crude Aug. futures settle at $68.45 a barrel up $1.88, 2.82%

NYMEX WTI crude Aug. futures settle at $68.45 a barrel up $1.88, 2.82%

New York, NY, July 2, 2025 - The NYMEX WTI crude August futures settled at $68.45 a barrel on Wednesday, up by $1.88, marking a 2.82% increase. This rally was driven by a combination of factors, including heightened geopolitical tensions in the Middle East and a sharp rise in U.S. crude oil inventories.

Market Dynamics

The Brent Oil Futures expiring in September also saw a 0.3% increase to $70.35 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.3% to $68.56 per barrel. These gains were largely attributed to supply disruptions in the Middle East, specifically Houthi attacks on Red Sea shipping lanes, which have created concerns about potential supply constraints [1].

U.S. Crude Inventories

The American Petroleum Institute (API) reported a significant increase in U.S. crude oil inventories for the week ending July 4, with a build of 7.1 million barrels, far exceeding the forecast 2.8 million-barrel draw. This unexpected rise in inventories may have contributed to the price increase, as it suggests an ample supply of crude oil in the U.S. market [2].

Geopolitical Tensions

Geopolitical tensions, particularly in the Middle East, have been a significant driver for oil prices. The Houthi attacks on vessels in the Red Sea have raised concerns about supply disruptions and potential escalations in the region, which can impact global oil supply and prices [1].

Future Outlook

Despite the recent price increase, analysts remain cautious about the long-term outlook for oil prices. The Energy Information Administration (EIA) has revised its estimates for U.S. crude oil production growth, expecting a slower growth rate in 2025 compared to previous projections. This suggests that the market may continue to experience a tight supply-demand balance, potentially supporting higher prices in the near term [2].

Conclusion

The NYMEX WTI crude August futures settlement at $68.45 a barrel reflects a complex interplay of geopolitical risks, supply disruptions, and domestic inventory levels. As the market continues to navigate these dynamics, investors and traders should closely monitor developments in the Middle East and U.S. energy policy to anticipate potential price movements.

References

[1] https://www.globenewswire.com/news-release/2025/07/09/3112954/0/en/Hola-Prime-Unveils-Hola-Prime-Futures-with-Industry-First-1-Hour-Withdrawals-Expands-Forex-Offering-with-MT4-Integration.html
[2] https://in.investing.com/news/commodities-news/oil-prices-edge-down-on-sharp-us-inventory-rise-fresh-tariff-concerns-4904522