Oil prices reached levels last seen in October. This growth can be attributed to rising tensions in the Middle East, coupled with a Ukrainian drone attack on a key Russian oil refinery, as well as strong economic data coming out of the United States.
Today, oil continues to rise in price. Here, the price of Brent crude oil has risen almost one percent to 89.7 dollars per barrel, and WTI – 0.8 percent to 85.82 dollars per barrel.
This upward trend in oil prices breaks the relatively stable consolidation range of $75-$85 per barrel seen since the beginning of the year, driven by rising geopolitical risks and strong economic indicators.
The week began with heightened tensions, particularly highlighted by an incident involving Iran and Israel. Iran has blamed Israel for a deadly airstrike on its consulate in Damascus, Syria, which killed seven Iranian officers. Iran’s possible further involvement in the conflict with Israel raises fears of a wider regional confrontation that could have significant implications for global oil supply chains.
In addition, a Ukrainian drone attack on one of Russia’s largest oil refineries in the Tatarstan region, far from the front lines of the ongoing conflict, added to the geopolitical chaos.
This year alone, the price of Brent crude oil has increased by more than sixteen percent, and WTI by almost a fifth, after rising by 5.4 and 6.5 percent respectively in the last one year.
