Brent crude settles higher but posts monthly losses of over 5%

Oil drilling rigs

Oil futures prices extended gains today, July 31, as US crude inventories fell for the fifth straight week amid renewed geopolitical tensions in the Middle East.

Brent crude futures for September delivery (which expire today) rose 2.65%, or $2.09, to $80.72 a barrel. The contract has fallen more than 5% since the start of July.

WTI crude for September delivery rose by 4.25%, or $3.18, to $77.91 per barrel, but recorded monthly losses of 3.40%.

Data from the US Energy Information Administration revealed that oil inventories fell by 3.4 million barrels last week, exceeding expectations of a 1.6 million barrel decline. Gasoline inventories fell by 3.7 million barrels.

According to monthly data, the number of barrels produced of US crude oil rose to 408.5 million in May from 397.2 million in April, the highest level since December 2023 (412.5 million)