Risks of supply disruption due to geopolitical tensions in the Middle East offset concerns about demand following the unexpected increase in US stockpiles.
The oil prices rose on Thursday as supply disruption risks from rising geopolitical tensions in middle East helped offset demand fears following an unexpected rise in US stocks.
The futures of Brent gained $1.14, or 1.34%, to $86.39 per barrel, and those in United States West Texas Intermediate (WTI) They rose 84 cents, or 1.04%, to $81.74.
Cross-border tensions between Israel and Lebanon’s Hezbollah have been increasing, stoking fears of an escalating war that could draw in other countries, including major oil producer, Iran.
The Ministry of Foreign Affairs of France He said the country is extremely concerned about the situation in Lebanon and called for restraint. Any contagion could have a major impact on Middle East crude supplies, he said. Ashley Kelly Panmure Gordon analyst.
Geopolitical and demand pressures
The US Energy Information Administration (EIA) reported an increase of 3.6 million barrels in oil stocks of the country last week. Analysts consulted by Reuters expected a reduction of 2.9 million barrels. They also increased gasoline stockswith an increase of 2.7 million barrels, despite the fact that analysts expected a reduction of 1 million barrels.
“The actual data was disappointing for supporters of continued market tightening due to seasonal demand,” he said. John Evans, analyst PVM Oil. “If it weren’t for the steadily increasing geopolitical risk in the Middle East, oil prices could have had a much more negative day,” he added.
Concern about the possibility of war between Israel and Hamas in Loop extends to Lebanon limited the fall in prices. If contagion were to occur, it could have a significant impact on crude oil supplies. Middle East, explained Ashley Kelty, analyst Panmure Gordon.
Source: Ambito
