Oil Prices Tumble Amid Middle East Risks, Gold Soars on Weaker Dollar

Crude oil futures declined on July 30 as profit-taking dominated following the previous day's sharp rally driven by escalating Middle East tensions. West Texas Intermediate (WTI) for September delivery, the front-month contract, settled at $83.59 per barrel, down $0.87, or 1.0%, from the previous session.

The advance estimate for U.S. real gross domestic product (GDP) for the April-June quarter, released in the morning, came in below market expectations, adding to selling pressure. Michael Lynch of Strategic Energy and Economic Research noted that speculation that demand may not be as strong as anticipated triggered the profit-taking.

Despite Middle East geopolitical risks heightening supply uncertainty, U.S. inventory statistics point to tightening supply-demand balances. According to the U.S. Energy Information Administration (EIA), U.S. crude oil inventories fell by 7.2 million barrels in the most recent week to 404.5 million barrels, the lowest level since 2018.

Meanwhile, gold futures on the COMEX division of the New York Mercantile Exchange rebounded sharply. The most actively traded December contract settled at $4,160.6 per troy ounce, up $63.60, or 1.6%, from the previous session.