WTI crude exceeds $63/barrel, up 4.43% intraday; Brent crude jumps 4.00% to $65.09/barrel amid geopolitical tensions.

WTI crude exceeds $63/barrel, up 4.43% intraday; Brent crude jumps 4.00% to $65.09/barrel amid geopolitical tensions.

Oil prices surged on Friday, with WTI crude exceeding $63 per barrel, marking a 4.43% intraday increase, and Brent crude jumping 4.00% to $65.09 per barrel, according to data from the U.S. Energy Information Administration (EIA) [2]. The rally was driven by a combination of factors, including a drop in U.S. crude stockpiles, easing trade tensions, and geopolitical uncertainties.

The EIA reported that U.S. commercial crude oil inventories fell by approximately 2.8 million barrels to 440.4 million barrels in the week ending May 23, contrary to market expectations of a 1 million barrel increase [2]. This unexpected decline in stockpiles helped to support oil prices, as it indicated robust demand in the U.S., the world's largest oil consumer.

Additionally, sentiment improved after a U.S. trade court struck down President Trump’s global tariffs, calling them illegal. This surprise ruling helped to reduce trade-related uncertainties and lifted the outlook for global oil demand [3]. On the supply side, OPEC+ wrapped up its latest meeting with a decision to keep output levels unchanged, signaling continued restraint even as market fundamentals tighten [3].

Geopolitical tensions also played a significant role in the price movements. A bipartisan push in the U.S. Congress to impose more sanctions on Russia's oil industry, coupled with Ukraine's drone strike on Russian aircraft, contributed to the market's risk aversion and supported oil prices [4]. Meanwhile, Libya's threat to shut down its oil production and exports following a militia group's storming of the country's state oil headquarters provided further support to prices [5].

Looking ahead, analysts remain cautious about the potential for further price increases. Despite the recent gains, the market is closely watching the OPEC+ meeting scheduled for Saturday, where members may announce a new production hike. Additionally, ongoing trade tensions between the U.S. and China, the world's two largest crude consumers, could continue to weigh on oil prices [2].

References:
[1] https://tradingeconomics.com/commodity/crude-oil
[2] https://www.aa.com.tr/en/energy/oil/oil-prices-rise-on-higher-us-demand-opec-and-tariff-risks-weigh-on-outlook/49537
[3] https://www.tradingview.com/news/te_news:460393:0-brent-crude-oil-extends-gain/
[4] https://www.rttnews.com/3543427/oil-prices-climb-on-supply-worries.aspx?type=cdt
[5] https://www.nasdaq.com/articles/crude-prices-slip-concern-about-large-opec-crude-production-increase