Boost from Powell put to fade fast

Fed Chair Jerome Powell’s confirmation earlier this week that an interest rate cut is likely in July gave most commodity prices a lift. And oil prices rose to their highest level since May following a sharp decline in US crude stocks, rising geopolitical tensions in the Strait of Hormuz and Tropical Storm Barry, which led to the closure of many US oil rig platforms. However, we think that the price of Brent will drop back as attention returns to demand concerns in the coming months.