Oil Rises Again, Market Awaits Iran News
Oil prices rose on Wednesday morning, as tensions over Iran in the Middle East returned to the forefront and overshadowed negative signals from surging US oil inventories. Market participants assessed current geopolitical risks as "more severe" than short-term inventory data.
WTI crude oil rose about 0.5% to $64.29 per barrel at 7:51 a.m. Singapore time, after closing slightly lower the previous day. Meanwhile, Brent held around $69, after closing down 0.4% at $68.80 per barrel on Tuesday.
This increase occurred due to reports that the US was considering tougher measures—including the option of seizing tankers carrying Iranian crude oil. There were also rumors that the US could send additional aircraft carrier groups to the region if negotiations on Iran's nuclear program reach a deadlock. These signals have caused the market to re-attach a risk premium to oil prices.
On the other hand, the factor that should have weighed on prices actually came from the United States. A report from the American Petroleum Institute (API) stated that US crude oil inventories jumped by 13.4 million barrels last week. If confirmed by official data, this figure would be the largest increase since November 2023, which typically indicates increased supply or weakening demand.
However, current market concerns are more focused on the scenario if the nuclear deal collapses: the risk of a US attack on Tehran or Iranian retaliation that could disrupt oil flows from the region. So far this year, oil prices have risen more than 10%, partly due to recurring geopolitical uncertainty.
Investors are also awaiting the next series of important agenda items. US President Donald Trump is scheduled to meet Israeli Prime Minister Benjamin Netanyahu on Wednesday to discuss the situation, while the market is also awaiting OPEC's monthly report and an IEA analysis due Thursday, which previously warned of a potential supply surplus this year if production increases faster than demand. (asd)
Source: Newsmaker.id
