Crude Oil Futures Settle Sharply Higher

Crude oil prices rose sharply on Tuesday amid expectations crude stockpiles may have dropped last week.

Analysts expect data from Energy Information Administration, due on Wednesday, will likely show a drop of about 4.4 million barrels last week.

Fears over the spread of the highly infectious Delta virus capped oil’s uptick.

West Texas Intermediate Crude oil futures for August ended up by $1.15 or about 1.6% at $75.25 a barrel.

The American Petroleum Institute (API) will release its weekly oil report later today, while the Energy Information Administration (EIA) will release its weekly inventory data Wednesday morning.

In its latest monthly oil market report, the International Energy Agency (IEA) said that oil markets will likely remain volatile until there is clarity on OPEC+ production policy.

“Volatility does not help ensure orderly and secure energy transitions — nor is it in the interest of either producers or consumers,” the IEA said.

Consumer prices in the U.S. saw the biggest monthly increase in thirteen years in the month of June, according to a report released by the Labor Department on Tuesday.

The Labor Department said its consumer price index jumped by 0.9% in June after climbing by 0.6% in May. Economists had expected consumer prices to rise by 0.5%.

The annual rate of consumer price growth accelerated to 5.4% in June from 5% in May, reaching the highest level since a matching spike in August of 2008.

Core consumer prices were up by 4.5% percent year-over-year in June, reflecting an acceleration from the 3.8% jump in May. Core prices saw the biggest annual increase since November of 1991.