Brent crude oil prices have surged above $US66 per barrel, marking the fifth consecutive session of gains and reaching levels not seen since October. The increase comes amid heightened tensions in the Middle East, particularly following US President Donald Trump’s threats of action over Iran’s response to recent protests. The US National Security Council is scheduled to convene to discuss potential options for the president.
ANZ analysts noted that geopolitical factors are currently outweighing otherwise bearish US inventory data. According to recent reports, US crude oil stockpiles increased by 3.4 million barrels last week, representing the most significant rise in the past two months. However, this increase was less than anticipated based on an earlier private sector report.
Positive Chinese trade data is also influencing market dynamics. Crude oil imports into China have risen to 56 million tonnes, continuing an upward trend as refineries maintain high utilisation rates. Concerns about supply disruptions in the natural gas market, stemming from the unrest in Iran, are further contributing to market volatility. European gas futures have partially recovered from earlier losses, reaching their highest levels since October after reports emerged of US personnel being relocated away from possible military targets, according to ANZ.
