Oil prices are climbing, reaching levels not seen since early October, driven by geopolitical instability in the Middle East. Unrest in Iran and potential US involvement are major factors, outweighing concerns about rising US crude stockpiles.
- WTI crude oil futures rose to about $61.90 per barrel.
- Prices are at their highest level since early October.
- Geopolitical risks in the Middle East are the primary driver.
- Growing concern over unrest in Iran and potential US involvement are supporting prices.
- President Trump encouraged protests in Iran.
- Instability raises fears of disruption to Iran’s crude output (approximately 3.3 million barrels per day).
- US crude stockpiles rose by 5.3 million barrels, along with increases in gasoline and distillates, a bearish signal.
The potential disruption of Iranian oil production, coupled with heightened geopolitical tensions, is creating upward pressure on prices. Even though inventory levels in the US are increasing, the overriding concern about global supply instability is pushing the price of oil higher. Any escalation of conflict or disruption to supply could lead to further price increases.