Oil Prices Record Another Increase: Market Movements and Geopolitical Tensions in Focus

The quotations for crude oil rose again on Wednesday, bringing prices to a level last seen in early May. A barrel of Brent crude from the North Sea, for delivery in July, increased to $84.96, representing a rise of 74 cents compared to the previous evening. Similarly, the price for a barrel of West Texas Intermediate (WTI) climbed by 74 cents to $80.57. A central factor for the recent price surge is the ongoing geopolitical tensions in the Middle East, triggered by the Gaza conflict. Recently, another ship was attacked in the Red Sea, highlighting the inherent risks of crude oil transport through this critical route. Consequently, many transport companies are increasingly avoiding this significant maritime passage. Despite the recent upswings, oil prices have been trading within a narrow range for weeks, lacking decisive momentum. On the supply side, a tight supply from major producing countries often contrasts with a demand that has been sluggish due to economic conditions, although it has recently seen a slight increase. Looking ahead to the weekend meeting of representatives from major producing countries, commodity analysts at ING expect that OPEC+ will continue its supply restrictions at least until the third quarter.