Oil Rally Continues, US Stockpiles Plunge Sharply
Oil prices held steady near six-month highs, following a sharp rally in the past two sessions fueled by rising geopolitical risks. US President Donald Trump said Iran has a "10-15 day" deadline for negotiations on its nuclear program, as Washington strengthens its military posture in the Middle East.
In the market, WTI held around $67 per barrel after strengthening nearly 7% in the previous two sessions, while Brent closed near $72. At Thursday's close, Brent rose 1.9% to $71.66/barrel and WTI rose 1.9% to $66.43/barrel, confirming gains to near six-month highs.
The market's biggest concern is the scenario of an escalation disrupting shipping flows through the Strait of Hormuz, a vital waterway that carries about 20% of global oil supply. This risk has driven a "geopolitical premium" attached to prices, making market participants more aggressive in placing hedges against potential price spikes if the conflict escalates.
Bullish support also comes from US fundamental data. The EIA report showed that US crude oil inventories fell by 9 million barrels in the final week, the largest decline since early September, while gasoline and distillate inventories also fell, as refinery activity and demand strengthened. This tightened short-term supply and helped prices remain at high levels.
Going forward, oil's direction will be largely determined by two factors: how quickly US-Iran tensions subside or escalate, and whether the Hormuz gas pipeline remains safe from disruption. As long as geopolitical uncertainty persists and US inventories shrink, the market is likely to maintain an upward bias despite potentially high volatility, as headlines can quickly shift sentiment. (asd)
Source: Newsmaker.id
