Crude Oil Prices Rise on Geopolitical Uncertainty, Strong Refining Activity
US crude oil prices rose by 0.58% during the week ending July 31, 2026, as geopolitical uncertainty surrounding global energy supply routes continued to lift market sentiment.
The modest increase was supported by improving refinery activity and tighter inventory sentiment, despite a volatile month that witnessed sharp swings in both directions.
Early July saw domestic oversupply concerns after policy decisions temporarily retained additional barrels within the US market, weighing on crude oil values. However, sentiment gradually strengthened through the second half of the month as geopolitical tensions in the Middle East elevated risk premiums and encouraged precautionary buying across the crude oil market.
Strong refinery utilization further tightened prompt crude oil availability by maintaining elevated processing rates, while inventories remained below longer-term historical norms, preventing a stronger bearish correction.
The near-term outlook for crude oil remains cautiously firm, with continued high refinery utilization expected to sustain healthy demand from the refining industry. However, rising domestic inventories and potential changes in US export policies remain key downside risks that could influence pricing.