Oil Rises Again, Iran a Trigger
Oil prices rose on Wednesday, as tensions in the Middle East centered on Iran returned to the forefront and overshadowed signals of rising US oil inventories. Market focus is now more on geopolitical risks than short-term inventory data.
Brent oil has re-entered the $69 per barrel price after closing slightly lower on Tuesday, while WTI held steady around $64. Market participants weighed several reports, including that the US is considering seizing tankers carrying Iranian crude. There were also other reports suggesting the US could send additional aircraft carrier groups to the region if negotiations on Iran's nuclear program fail.
Meanwhile, an industry report from the American Petroleum Institute (API) stated that US crude inventories jumped by 13.4 million barrels last week. If confirmed by official figures, this increase would be the largest by volume since November 2023—which typically puts downward pressure on prices.
However, the market believes the risk of supply disruptions remains dominant. So far this year, crude oil has risen more than 10%, supported by a series of geopolitical tensions, including the latest US efforts to push for a deal on Iran's nuclear program. While initial talks have been described as positive, market participants are concerned that failure to reach a deal could trigger an escalation—from a potential US attack to an Iranian response—that could threaten the flow of oil from the OPEC member.
US President Donald Trump also added to the spotlight by saying that the leadership in Tehran “wants to make a deal” and “would be foolish not to,” referring to his remarks to Fox Business. Trump is scheduled to meet Israeli Prime Minister Benjamin Netanyahu at the White House on Wednesday to discuss the situation.
Looking ahead, traders are also awaiting OPEC’s monthly report on the global market outlook, followed by analysis by the International Energy Agency (IEA) on Thursday. The IEA previously warned of the potential for a large surplus this year if supply growth outpaces demand—a factor that could act as a counterbalance to geopolitical risks.
In morning trading in Asia, Brent crude for April rose 0.5% to $69.14 per barrel at 9:33 a.m. Singapore time, while WTI crude for March rose 0.5% to $64.30 per barrel.
Source : Newsmaker.id
