As of Sunday, the price of Brent Crude has risen above $91 per barrel and has crossed over the $90 per barrel benchmark since Friday. While traders looked for any indications of a direct conflict between Israel and Iran that may further restrict supplies, global crude oil prices registered a second straight weekly gain and reached six-month high levels.
The expectation of Iran’s retaliatory strike on Israel, a growing export deficit from Mexico, and the extension of OPEC+ cutbacks have all contributed to the current uptick in oil market mood, according to Oilprice.com.
Brent Crude was trading at $91.17 on Sunday, having risen from $86.80 on April 1 and $81.92 on March 12, 2024. Over the weekend, WTI Crude traded for roughly $87, up from as low as $77.56 a month earlier.
Both Brent and WTI settled on Thursday at their highest levels since October according to Reuters. The Murban crude was at the rate of $91.15 on Sunday evening. The same Murban sold at $73.88 in December 2023.
Nigeria’s Qua Iboe and Brass River crude stood at $95.05, up from as low as $74.83 in December last year. It was observed that the price of a gallon of Premium Motor Spirit rose to $2.800 over the weekend, from as low as $2.001 as of December 8.
Oil prices had continued their upward trajectory amid investors’ apprehensions regarding potential disruptions in supply due to escalating geopolitical tensions.
Both global benchmarks, Brent and WTI clocked over four per cent gains in the past week after oil-producing Iran vowed revenge against Israel for an attack that killed high-ranking Iranian military personnel, according to reports.
When crude prices began to soar in March, it was said that the string of Ukrainian drone attacks on Russian refineries which were affecting fuel output in the world’s largest exporter was one major reason for the rise in crude prices.
The crude prices dipped a few weeks after and the downward trend in the prices of crude oil in the global oil market was blamed on weaker United States gasoline demand data and reports of a United Nations draft resolution calling for a ceasefire in Gaza.
According to Reuters, though gasoline inventories fell for a seventh week from 3.3 million barrels to 230.8 million gasoline products supplied, a proxy for product demand slipped below 9 million barrels.
At the moment, the sharp increase in oil prices was because players in the oil market were watching for signs of any direct conflict between Israel and Iran that could further tighten supplies.
