Analysts expect prices to continue rising due to geopolitical pressures, despite the fact that the strength of the dollar makes crude oil more expensive for other currencies.
The oil prices They rose on Wednesday, approaching almost two-month highs, driven by forecasts of an eventual reduction in inventories during the peak summer demand season of the third quarter and the geopolitical risks arising from the conflict in Middle East.
He American Petroleum Institute (API) reported on Tuesday that oil stocks in USA increased by 914,000 barrels, according to market sources. Still, analysts expect them to decline by almost three million barrels in official inventory data due later in the day.
From these data, the futures of the Brent rose 24 cents, or 0.28%, to $85.25 a barrel, and those of the West Texas Intermediate (WTI) in the United States they gained 7 cents, or 0.09%, to $80.90.
“The general opinion is that demand will increase during the summer,” he explained to the Reuters agency. Tamas Varga, of the brokerage PVM; and added that “geopolitics continues to be considered a supporting element of the equation.”
Tensions in the Middle East make oil more expensive
Cross-border tensions between Israel and Hezbollah of Lebanon surged in recent weeks, stoking fears of an all-out war that could draw in other regional powers, including major oil producer, Iran.
“The geopolitical risk premium has been returning to the market as a war between Israel and Lebanon is likely to see direct involvement of Iran, that would be a concern,” he said. Andrew Lipow, of Houston-based Lipow Oil Associates.
The Turkish president, Tayyip Erdogan, He said his country stands in solidarity with Lebanon and called for the support of nations in the region.
The Houthi attacks to navigation in the Red Sea have supported oil prices. The group said it attacked a ship in the Israeli port of Haifa with several drones in a joint military operation with the Islamic Resistance in Iraq.
Source: Ambito
