Oil traded near a two-month high after breaking out of its recent trading range on an escalation in tensions in the Middle East and concerns over the rapid start to the Atlantic hurricane season. Brent crude traded near $87 a barrel after rising Monday, while West Texas Intermediate was above $83. “The breakout of the recent range to a new higher high reinforces the near-term upward trend,” said Yeap Jun Rong, market strategist for IG Asia Pte. Increased trading in crude futures has lifted implied volatility, with a gauge for Brent moving to near the highest in a month. Money managers have been piling back into oil and refined products including diesel, and timespreads remain in a bullish backwardation structure.

Source: The North Africa Journal July 02, 2024 11:01 UTC