Oil Prices Rise Amid Escalating Geopolitical Tensions
Global oil prices surged on Thursday, driven by escalating tensions in various regions, which raised traders' concerns about potential supply disruptions.
Brent crude futures increased by 0.4% to $62.48 per barrel, while West Texas Intermediate (WTI) rose by 0.6% to $58.79 per barrel during Asian trading hours.
This rise followed the announcement by the United States of the seizure of a large oil tanker off the coast of Venezuela, with President Donald Trump stating: "We just seized an oil tanker off the coast of Venezuela... a very large tanker... in fact, the largest, and other things are happening."
In a separate but significant development, reports of a Ukrainian drone attack on a tanker involved in Russian oil trade in the Black Sea contributed to the upward trend.
Market analyst Tony Sycamore from IG noted that the price movements were influenced by news of the U.S. tanker seizure and that the Black Sea attack provided "additional support for prices."
Sycamore anticipated that this influence would persist, stating: "It is likely that these developments will keep crude oil prices above the critical support level of $55 until an unexpected peace agreement is reached in Ukraine."
In this context, market participants reported that Asian buyers are demanding significant discounts on their imports of Venezuelan crude oil, due to the influx of sanctioned oil from competitors like Russia and Iran, as well as increasing operational risks surrounding Venezuela amid heightened U.S. military presence nearby.
Separately, investors are closely monitoring ongoing discussions regarding the Ukraine crisis, especially following a phone call between the leaders of the UK, France, and Germany with President Trump, which they described as a "critical moment" in the political process.
