Brent futures for delivery in June were traded at $88.58 per barrel, which corresponds to an increase of $1.2 per barrel compared to the previous session. The Texan WTI registered an increase of 1.3 dollars per barrel, being traded at 84.97 dollars.
Oil prices rose this Tuesday to their highest values since October, as investors monitor new threats to supply during the growing conflict in the Middle East and Ukrainian drone attacks on Russian oil companies, according to “CNBC”.
Brent futures for delivery in June were traded at $88.58 per barrel, which corresponds to an increase of $1.2 per barrel compared to the previous session. The Texan WTI registered an increase of 1.3 dollars per barrel, being traded at 84.97 dollars.
Since the beginning of the year, Brent has been trading in the range between 75 dollars and 85 dollars, however the ongoing geopolitical tensions and economic data seem to have legitimized an increase in the price. Since October last year, crude oil has not been traded above 90 dollars per barrel.
Tamas Varga, analyst at PVM Oil Futures, states that “the new month and the new quarter were met with an escalation of tension in the Middle East, with direct involvement from Iran”.
Iran, a member of OPEC, was the target of an Israeli attack that killed several people at the Iranian consulate in Damascus, Syria. The Middle Eastern country threatened to retaliate, which takes the Middle East conflict to new proportions.
Varga emphasizes that Iran’s potential involvement in the Israel-Hamas conflict could trigger a “regional-scale conflict, with a plausible impact on oil supplies”.
In addition to this conflict and the possibility of Iran’s involvement in the conflict, Ukraine continues to target Russian refineries with drones, which has caused some disruption to Russian production.
Tags: Escalating tensions Middle East conflict rises oil prices
