According to ANZ Bank’s statement on Thursday, the market’s fears that the Israel-Hamas conflict may expand throughout the region and jeopardize oil supplies were heightened by the rise in crude oil prices that followed news of an impending attack on Israel.
The claims follow Iran’s promise to strike back following the death of a key military commander during an attack on its embassy in Syria. The Revolutionary Guard of Iran issued a warning earlier this week, stating that it might obstruct trade over the Strait of Hormuz.
At the latest check early on Thursday, West Texas Intermediate crude was trading at US$86.24/b, while Brent crude was trading at US$90.53 per barrel. The bank stated that earlier in the day, prices were impacted by an increase in US gasoline and oil stockpiles.
Sentiment is likely to remain bullish with support from OPEC supply cuts and rising tensions in the Middle East, which are likely to keep the geopolitical premium high, ANZ Bank said. Banks Face Risks over 24hrs FX Positions Sell Down
US crude oil inventories gained 5.9 million barrels week over week to 457.3 million barrels in the week ended April 5, the US Energy Information Administration reported Wednesday.
Crude oil production remained unchanged at 13.100 million barrels per day, the EIA reported.
Crude oil imports edged higher by 0.24 million b/d week over week to 6.508 million b/d, while crude oil exports fell 0.11 million b/d to 3.948 million b/d.
US gasoline stocks also rose 0.7 million barrels week over week to 228.5 million barrels, according to the EIA.
