Oil prices are experiencing upward pressure due to geopolitical tensions between the US and Iran, countered by concerns about rising US crude inventories and potential global surpluses. While the market is attentive to potential military actions impacting supply, data indicates a significant increase in US crude stocks, which may limit further price gains.
- WTI crude oil futures rose toward $65 per barrel.
- Markets are focused on US-Iran tensions.
- President Trump signaled he aims to secure an agreement with Tehran.
- Traders worry about potential military action and the risk to supply.
- EIA data showed US crude inventories surged by 8.5 million barrels last week.
- US crude inventories reached their highest level since late June.
- OPEC kept its 2026 and 2027 demand growth forecasts unchanged.
- OPEC maintained its non-OPEC supply outlook.
- The IEA is set to release its monthly report later today, which may again highlight a global surplus.
The current market dynamic suggests a tug-of-war between supply concerns driven by geopolitical instability and factors pointing towards oversupply. Price increases fueled by worries over potential disruptions are being tempered by rising inventory levels and expectations of continued surplus in the global market. This creates a volatile environment where price movements are influenced by both immediate events and longer-term supply/demand fundamentals.