Geopolitical Tensions Drive Crude Oil Above $80

WTI crude futures rose above $80 a barrel on Monday, marking this month’s highest level. This increase extends a 2.3% rise from last week, driven by escalating geopolitical tensions in the Middle East.

Geopolitical Tensions Drive Crude Oil Above $80

Geopolitical Tensions Drive Crude Oil Above $80

The recent geopolitical turmoil has significantly impacted the oil market. The deaths of Iranian President Ebrahim Raisi and Foreign Minister Hossein Amirabdollahian in a helicopter crash have added to the uncertainty. Additionally, Saudi Arabia’s Crown Prince Mohammed bin Salman postponed his trip to Japan due to concerns over the king’s health.

Several global incidents have also influenced oil prices. Ukraine’s attacks on Russian refining facilities and a Houthi missile strike on a China-bound oil tanker in the Red Sea have heightened market volatility. These events contribute to the growing unpredictability of the oil market.

OPEC’s Latest Report and Future Outlook

The latest OPEC report revealed that member countries exceeded their production cap by 568,000 barrels per day in April. Despite this, OPEC maintains solid demand projections of 2.25 million barrels per day in 2024 and 1.85 million in 2025.

Looking Ahead to OPEC’s June 1st Meeting

Investors are now focused on OPEC’s upcoming meeting on June 1st. The group is expected to decide on its output policy for the remainder of the year. The outcomes of this meeting will likely influence oil prices and market stability moving forward.