Oil prices rise on Middle East tensions
Shafaq News/ Oil prices climbed 1% on Wednesday, driven by escalating tensions in the Middle East and fears of potential disruptions to oil supplies from the region. Brent crude futures rose 84 cents to $74.40 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 87 cents to $70.70 per barrel.
The conflict between Iran and Israel has intensified, with Iran launching a large-scale missile attack on Israel and Israel vowing retaliation. There are concerns that the conflict could escalate further, potentially impacting oil production in the region.
Iran's oil output has been rising, reaching a six-year high of 3.7 million barrels per day in August. However, a significant escalation of the conflict could disrupt Iranian supplies and lead to a global oil supply shortage.
While a large build in U.S. crude inventories limited gains in oil prices, the overall market sentiment remains bullish due to the geopolitical tensions. The OPEC+ group has maintained its current output policy, with plans to increase production by 180,000 barrels per day each month from December. However, there are concerns that Saudi Arabia may not adhere to the agreed-upon production limits, which could lead to lower oil prices.
