Oil prices are on the rise, hovering near two-week highs after a 6% gain last week. Geopolitical tensions between western powers and major oil producers Russia and Iran have escalated, increasing the risk of supply disruptions.
Brent crude futures rose 13 cents to $75.30 a barrel, while U.S. West Texas Intermediate crude futures reached $71.38 a barrel, up 14 cents. Both contracts saw their biggest weekly gains since late September last week, reaching their highest settlement levels since Nov. 7.
The recent tensions between Russia and Ukraine, as well as Iran’s response to a U.N. resolution, have raised concerns about potential disruptions to oil supplies. Iran’s actions could lead to enforced sanctions that may sideline about 1 million barrels per day of Iran’s oil exports, accounting for 1% of global oil supply.
Investors are also keeping an eye on rising demand in China and India, the world’s top and third-largest importers of oil, respectively. China’s crude imports rebounded in November, while Indian refiners increased crude throughput by 3% in October, driven by fuel exports.
The Iranian foreign ministry is set to hold talks about its nuclear programme with European powers on Nov. 29. The outcome of these discussions could have significant implications for global oil markets.
Overall, the current geopolitical landscape and rising demand in key markets are driving oil prices higher. Investors should monitor these developments closely as they could impact global oil supply and prices in the coming weeks.
