U.S. crude oil rose more than 2% on Monday to top $80 per barrel, adding to last week’s gains.
West Texas Intermediate surged nearly 4% last week, snapping a three-week decline and its best weekly performance since early April. Oil prices are rising on expectations summer fuel demand will draw down inventories and tighten the market in the third quarter.
But Bob Yawger, executive director of energy futures at Mizuho Securities, said the rally is largely speculators covering short positions and “could evaporate at any given moment.”
Yawger said the data out of China, the world’s top crude importer, and gasoline demand from summer driving season need to improve dramatically in order for economic fundamentals to support the move higher.
Here are Monday’s closing energy prices
- West Texas Intermediate July contract: $80.33 per barrel, up $1.88, or 2.4%. Year to date, U.S. oil has gained 12.1%.
- BrentAugust contract: $84.25 per barrel, up $1.63, or 1.97%. Year to date, the …