Geopolitical Tensions Push Oil Prices Higher
Oil prices experienced a notable increase during trading on Thursday, attributed to escalating geopolitical tensions across various regions, which heightened concerns among traders regarding possible supply disruptions.
Brent crude futures climbed 0.4% to $62.48 per barrel, while West Texas Intermediate crude rose 0.6% to $58.79 per barrel in Asian markets.
This uptick followed the U.S. announcement of the seizure of a large oil tanker off Venezuela's coast. President Donald Trump remarked, "We just seized an oil tanker off the coast of Venezuela... a very large tanker... it's actually the largest ever, and other things are happening."
In a related development, reports indicated that Ukrainian drones targeted a tanker involved in Russian oil operations in the Black Sea, further contributing to the bullish market sentiment.
Market analyst Tony Sycamore from IG noted that the price fluctuations were influenced by the U.S. tanker seizure, while the Black Sea incident provided additional upward pressure on prices.
Sycamore anticipates that these developments will likely sustain crude oil prices above the critical support level of $55 until year-end, barring any unexpected peace agreements in Ukraine.
In this context, traders reported that Asian buyers are seeking substantial discounts on Venezuelan crude imports, influenced by an influx of sanctioned oil from competitors like Russia and Iran, alongside rising operational risks associated with Venezuela amid an increased U.S. military presence in the region.
Additionally, investors are closely watching ongoing discussions regarding the Ukrainian crisis, particularly after a recent phone call involving the leaders of Britain, France, Germany, and President Trump, which was characterized as a "critical moment" in the political landscape.
