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       WTI Crude Soars to Highest Level Since April on Demand Optimism,
       Hurricane Beryl
        
 (HTM) Source
        
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       Hurricane Beryl strengthened overnight to a powerful Category 5 storm
       as it churned in the Caribbean Sea. The Cat. 5 storm is the earliest
       on record in the Atlantic hurricane season and has caused concern
       among energy traders about potential Gulf Coast disruptions.
        
       On Monday morning, Beryl made landfall on Grenada's Carriacou Island
       in the Caribbean Sea with winds around 150 mph. **According to NOAA
       data dating back to 1851, this is the strongest known storm to
       traverse the Grenadines area.**
        
       Beryl's arrival marks an early start to what some meteorologists had
       said would be an active hurricane season. The storm's intensity has
       spooked energy traders, sending West Texas Intermediate (occasionally
       called Texas Light Sweet) to two-month highs on Monday.
        
       Bloomberg noted, _**"Oil futures rose Tuesday, trading at their
       highest since late April, with gains tied to expectations for heavy
       travel around the Independence Day holiday and concerns that powerful
       Hurricane Beryl could later cause disruptions to offshore crude
       production in the Gulf of Mexico."**_
        
       Senior analyst Ipek Ozkardeskaya from Swissquote Bank, in a note to
       clients, emphasized that while Beryl may not immediately impact
       operations in the Gulf of Mexico, it could potentially cause
       disruptions later in the week.
        
       Computer models show the storm making landfall on or around Mexico's
       Yucatan Peninsula around Friday morning and possibly curving north
       towards the US Gulf Coast afterward.
        
        **Related: U.S. Energy Production Chalks Up Another Record**
        
       A **combination of tensions in the Middle East, robust demand ahead of
       July 4, a big short squeeze, and a rapid start to the Atlantic
       hurricane season** are some factors driving WTI higher, up 10% since
       April 26.
        
       As we predicted on June 6, an active Atlantic hurricane season with
       storms like Beryl could potentially disrupt major US Gulf Coast
       refineries. **This disruption could drive prices at the gas pump to
       the politically sensitive $4-a-gallon level for the Biden
       administration ahead of the presidential elections this fall.**
        
       Queue up more SPR dumps...
        
       By Zerohedge.com
        
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