Crude oil has gained to start the week as Saudi Arabia demonstrated its confidence in oil demand with a larger than expected price increase in Asia. Saudi Aramco increased its prices to Asia for July by raising its light crude premium to $6.50 from $4.50. Will this confidence for demand translate into a further lift for oil prices this month?
Over the last 10 years, WTI crude oil has only lost value twice between June 09 and July 01. The average gain has been 2.39% profit and the maximum gain was 10.21% in 2019. The biggest loss during that period was in 2015 with a 5.88% loss. Does it make sense to buy WTI Crude Oil on these strong seasonals?
Major Trade Risks: Any sign of slowing growth is likely to reduce demand for oil and could weigh on growth expectations.
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