Oil prices rose amid U.S. strikes on Iran and a decline in inventories
Global oil prices rose on June 10, partially offsetting the losses from the previous trading session, when prices had fallen to their lowest level in seven weeks. The main factors driving the price increase were new U.S. military strikes on Iran and a significant reduction in U.S. oil inventories.
As of this morning, Brent crude futures rose by 66 cents, or 0.7%, to $92.11 per barrel.
Meanwhile, U.S. West Texas Intermediate (WTI) crude rose by 60 cents, or 0.7%, to $88.80 per barrel.
Experts note that the escalation of tensions in the Middle East has heightened investors’ concerns about the stability of energy supplies to the global market.
“Although diplomatic efforts are ongoing, the latest exchanges of fire have once again raised the geopolitical risk premium in oil markets,” explained Priyanka Sachdeva, senior market analyst at Phillip Nova.
Data on a sharp decline in U.S. crude oil inventories provided additional support to oil prices. By the end of last week, inventories had fallen by 9.12 million barrels.
A decrease in gasoline inventories of 1.19 million barrels was also recorded, indicating stable demand for fuel and supporting positive sentiment in the energy market.
Analysts believe that the future trajectory of oil prices will largely depend on developments regarding Iran, as well as on new data regarding fuel inventories and demand in the world’s largest economies.
This is reported by Reuters.
Global oil prices surged during Monday’s trading due to the resumption of hostilities in the Middle East.
Prior to this, oil prices had fallen amid a ceasefire between Lebanon and Israel — Reuters.
