US crude oil hits two-month high, surpassing $84 a barrel amid war and hurricane fears – NBC New York

• The price of US crude oil has hit a two-month high amid fears of war between Israel and Hezbollah and an early and active hurricane season in the Gulf of Mexico.
• Ahead of the Fourth of July holiday, gasoline prices have averaged $3.50 per gallon, up 3 cents from last week but still down from last month.

The price of U.S. crude oil rose above $84 a barrel on Tuesday, hitting a two-month high, as concerns grow that a war between Israel and Hezbollah and an active hurricane season in the Gulf of Mexico could lead to supply disruptions.

While oil prices continue to rise, gasoline prices have fallen to an average of $3.50 per gallon ahead of Independence Day on July 4, according to the AAA automobile association. Prices at the pump are 3 cents higher than last week, but still lower than last month.

Here are the current energy prices:

• West Texas Intermediate contract for August: $84.28 per barrel, up 90 cents or 1.03%. U.S. crude oil has gained 17.6% since the beginning of the year.
• Brent September contract: $87.35 per barrel, up 75 cents or 0.75%. The global benchmark is up 13.4% year-to-date.
• RBOB Gasoline contract for August: $2.61 per gallon, up 1.35%. Year-to-date, gasoline prices are up 24.27%.
• Natural gas contract for August: $2.44 per thousand cubic feet, down 1.25%. Year-to-date, gas prices have fallen 2.8%.

Oil prices rose 6% last month after falling in May amid renewed geopolitical risks. Israel Defense Forces said 18 Israeli soldiers were wounded in a drone attack by the Iran-backed Hezbollah militia on Sunday.

Israel and Hezbollah have been trading fire across the Lebanese border for months, but tensions have escalated in recent weeks as both sides have threatened war. An Israeli invasion of Lebanon to push back Hezbollah could lead to a confrontation with OPEC member Iran, analysts warn.

Traders also fear that an early and intense hurricane season could affect refineries and oil production on the US Gulf Coast. Hurricane Beryl has developed into a Category 5 storm after making landfall on the island of Carriacou off Grenada.

According to Bob Yawger, managing director of energy futures at Mizuho Securities, Beryl is unlikely to impact oil infrastructure, but it could indicate a difficult hurricane season.

“The magnitude and timing on the calendar are cause for concern,” Yawger told clients in a note Monday. Gasoline prices would rise if a hurricane hit refineries along the Gulf Coast, while oil would trade lower as unused barrels would pile up, Yawger said.