Oil up on Wednesday

Oil prices surged on escalating regional tensions. Brent crude neared $80 a barrel, recovering from a recent drop, with West Texas Intermediate (WTI) at $76. This follows Israeli attacks on Beirut and ongoing violence jeopardising cease-fire talks.

Market analysts are concerned about risks to oil production and exports from Iran. Despite the Israeli aggression in the region, global demand remains weak due to China’s economic slowdown. Brent is set for an 8 per cent monthly drop, the largest this year, though OPEC+ supply cuts and potential Federal Reserve interest rate cuts provide some support.

In the US, crude inventories fell by 4.5 million barrels, possibly marking the longest decline streak since January 2022.

Attribution: Bloomberg