Oil prices saw a significant rise today, reflecting the ongoing volatility in global crude markets. West Texas Intermediate (WTI) increased by $1.42 (2.07%), reaching $70.17 per barrel, while Brent crude rose by $1.48 (2.03%) to $74.29.
The sharp uptick in prices is largely attributed to the escalating Russia-Ukraine conflict. Oil traders are once again bracing for possible supply disruptions after Russia launched hypersonic missile strikes on Ukraine. This followed Ukraine’s missile attacks, using U.S. and British-provided missiles, on Russian territory earlier in the week.
Market observers are concerned that further military actions could target Russian energy infrastructure or provoke retaliatory measures that may affect oil production or exports. Russia is the world’s second-largest crude exporter, and any threat to its supply chain causes market unease.
OPEC+, which includes Russia, is also weighing the option of delaying planned production increases for December, a move that could further support crude prices. In addition, China’s new policies to boost trade and energy imports are adding another layer of complexity to the market.
Despite the bullish factors, there were signs of weakness. U.S. crude inventories unexpectedly rose by 545,000 barrels last week, according to the latest data from the Energy Information Administration (EIA), surprising analysts who had forecast a smaller increase. Gasoline stocks also grew, suggesting weaker demand. Meanwhile, a reduction in tensions with Iran, as the country agreed to halt its uranium stockpiling, offered some relief to the market.
Overall, oil traders are navigating a mix of uncertainty and caution, with geopolitical risks keeping supply concerns high and demand signals appearing inconsistent. Analysts expect continued market volatility, although the International Energy Agency (IEA) has maintained its forecast that global oil supplies will comfortably outpace demand next year.
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