Oil prices edged higher on Wednesday as traders anticipate an extension to supply cuts by OPEC+ this week amidst heightened geopolitical tensions driving market sentiment.
Brent crude futures rose by 0.26% to $73.81 a barrel, while U.S. West Texas Intermediate crude futures increased by 0.19% to $70.07.
Geopolitical factors such as a fragile ceasefire in the Middle East, South Korea’s martial law declaration, and rebel activity in Syria are supporting oil prices, according to market analysts.
Despite the bullish momentum, crude oil has not breached the $75 resistance level, suggesting that the market may be cautious of geopolitical and economic developments, said industry experts.
OPEC+ is expected to prolong its voluntary production cut of 2.2 million barrels per day until the first quarter of 2025, which could keep oil prices range-bound unless a new catalyst emerges.
Analysts anticipate a decline in U.S. crude stocks and a rise in gasoline stocks in the upcoming data release from the U.S. Energy Information Administration.
In summary, oil prices are influenced by geopolitical tensions, OPEC+ decisions, and supply-demand dynamics. Understanding these factors can help individuals make informed decisions about their investments and financial planning.
