WTI Crude Oil Rises Amid Geopolitical Tensions
FxNews – WTI crude oil futures saw an upward trend, approaching $74.5 per barrel on Thursday. This rebound comes after a recent dip, with rising geopolitical uncertainties in the Middle East contributing significantly to the oil market’s risk premium. Analysts are particularly focused on the ongoing Israeli military activities in Gaza and the increasing role of Iran in the conflict. Additionally, the anticipation that the US Federal Reserve will reduce interest rates next year is positively influencing global growth forecasts and energy demand, further bolstering oil prices.
WTI Crude Oil Analysis
Contrastingly, WTI crude oil prices experienced a near 2% drop on Wednesday. This decline occurred after major shipping companies announced a return to the Red Sea route. This route change followed the establishment of a US-led maritime task force aimed at safeguarding commercial vessels in the region. In other developments, industry reports revealed a significant increase in US crude inventories. Last week, there was a jump of 1.84 million barrels, the largest weekly rise seen in five weeks.