Oil prices have risen due to escalating tensions in the Middle East, particularly those involving Iran. West Texas Intermediate (WTI) crude climbed above $US64 a barrel, while Brent crude neared $US69. These gains occurred despite a US industry report indicating a significant increase in crude stockpiles.
Traders are closely monitoring several reports, including one suggesting the US is considering seizing tankers carrying Iranian crude and another indicating that an additional aircraft carrier strike group may be deployed to the region if nuclear negotiations with Iran fail. The American Petroleum Institute reported a substantial 13.4 million barrel increase in US inventories last week. If confirmed by official government data, this would represent the largest increase since November 2023.
Crude oil has increased by over 10 per cent this year, driven by geopolitical instability and ongoing US efforts to secure a nuclear agreement with Iran. Initial discussions have been encouraging. However, concerns persist that a breakdown in negotiations could lead to potential US military action against Tehran, potentially endangering oil supplies from the OPEC member or prompting retaliatory measures from Iran.
Market participants are also awaiting OPEC’s monthly report on the global market outlook. Subsequently, the International Energy Agency will release its analysis, which has cautioned about a potential major surplus this year due to supply outpacing demand.
