Crude oil prices stabilized on Wednesday, although they remain near last month’s upper values. Brent crude futures hovered around the key level of $85 per barrel, while US WTI remained below $81 per barrel.
The recent climb in crude oil prices could continue amidst escalating geopolitical tensions, triggered by a Ukrainian drone strike that caused a fire at a major oil terminal in Russia’s port, heightening concerns over supply disruptions.
Moreover, Israeli warnings of a potential escalation in the conflict added to market anxieties.
These rising geopolitical tensions in Europe and the Middle East continue to support crude prices due to risks of disruptions to global supply chains.
However, the increase in oil prices remains tempered by cautious remarks from US Federal Reserve officials regarding interest rates and inflation trends. Attention now turns to forthcoming US inventory data on Thursday, which will provide insights into summer demand amid geopolitical uncertainties.
Crude oil stocks in the United States surged by 3.730 million barrels in the week ending June 7, according to the EIA Petroleum Status Report, surpassing market expectations of a 1.55-million-barrel decline and marking the largest increase in six weeks.
