Brent Oil Prices “At Our Summer Peak”

Crude oil prices have reached their “summer peak” at $86 per barrel, as forecasted by analysts from Goldman Sachs.

In a recent note to clients, the analysts highlighted that robust summer travel activity in the U.S. and strong global demand for jet fuel are continuing to support the benchmark price.

On Wednesday, crude prices increased despite an unexpected rise in U.S. oil stockpiles, as traders considered the geopolitical risks and maintained confidence in the summer driving season.

As of 05:40 ET (09:40 GMT), the Brent contract rose by 0.8% to $84.91 per barrel, while West Texas Intermediate (WTI) futures traded 0.9% higher at $81.56 per barrel.

According to data from the American Petroleum Institute released on Tuesday, U.S. oil inventories increased by approximately 0.9 million barrels during the week ending June 21. This development was surprising, as analysts had forecasted a decline of 3 million barrels. However, the increase is largely being overlooked as investors anticipate stockpile reductions in the upcoming third quarter, with official figures from the Energy Information Administration expected later in the session.

Both Brent and WTI contracts have experienced significant gains over the past two weeks. The Goldman Sachs analysts noted that ongoing geopolitical tensions—such as Israeli airstrikes on Gaza and Ukrainian attacks on Russian refineries—continue to be a concern for market participants.