WTI and Brent crude rise 1% intraday, now at $65/barrel and $67.05/barrel respectively.

WTI and Brent crude rise 1% intraday, now at $65/barrel and $67.05/barrel respectively.

Oil prices have shown resilience today, with West Texas Intermediate (WTI) and Brent crude oil both rising by approximately 1% intraday. As of the latest data, WTI is trading at $65.00 per barrel, while Brent crude is at $67.05 per barrel. This upward movement comes amidst ongoing geopolitical tensions and supply concerns [1].

The recent escalation of tensions between Israel, Iran, and the United States has been a significant factor influencing oil prices. Iran's Supreme Leader, Ayatollah Ali Khamenei, has vowed to retaliate against further U.S. attacks, adding a layer of uncertainty to the already volatile market [1]. Despite the Israel-Iran ceasefire, comments from Khamenei have raised concerns about the sustainability of the truce, potentially impacting oil prices [1].

Inventory data has also played a crucial role in driving oil prices. The Energy Information Administration (EIA) report released on Wednesday highlighted a sharper-than-expected drawdown in oil inventories, which has provided temporary relief to oil prices. The fall in inventories indicates that demand continues to outpace supply, supporting the current price levels [1].

Analysts have noted that the market is starting to digest the fact that crude oil inventories are very tight. The EIA report showed a decline in crude and fuel stockpiles, alongside a rise in refining activity and demand, which has provided some support for prices [2]. Additionally, the possibility of early interest rate cuts in the U.S. has also contributed to bullish sentiment, as lower rates could bolster oil demand [2].

Despite these positive factors, the market remains cautious about the potential for supply disruptions. The Iran-Israel conflict has highlighted the sensitivity of oil prices to geopolitical events, and any further escalation could lead to a recovery in oil prices as fears over potential supply disruptions resurface [1].

In conclusion, the recent rise in WTI and Brent crude prices reflects a complex interplay of geopolitical tensions, inventory data, and market sentiment. While the current ceasefire between Israel and Iran has provided some relief, the market remains vigilant to any potential disruptions to the supply chain.

References:
[1] https://www.fxstreet.com/news/wti-crude-oil-rebounds-with-iran-and-supply-concerns-back-in-focus-202506261753
[2] https://timesofindia.indiatimes.com/business/international-business/crude-oil-price-to-slump-prices-set-for-biggest-weekly-drop-since-march-2023-supply-risk-premium-from-israel-iran-conflict-fades/articleshow/122107033.cms