Geopolitical Tensions Drive Oil Prices Higher
Global oil markets experienced a notable rise during trading on Thursday, prompted by escalating geopolitical tensions in multiple regions, which raised concerns among traders regarding potential supply disruptions.
Brent crude futures climbed by 0.4% to $62.48 per barrel, while U.S. West Texas Intermediate crude rose by 0.6%, reaching $58.79 per barrel during Asian trading hours.
This increase follows the announcement by the United States regarding the seizure of a large oil tanker off the coast of Venezuela, which President Donald Trump commented on, stating: "We just seized a tanker off the coast of Venezuela... a very large tanker... in fact, the largest, and other things are happening."
In a separate but related development, reports of Ukrainian drones targeting a tanker involved in Russian oil trade in the Black Sea have also contributed to the bullish sentiment.
Tony Sycamore, a market analyst at IG, noted that the price movements came "after news of the U.S. seizure of a tanker off the coast of Venezuela," and added that the attack in the Black Sea "provided additional support for prices."
Sycamore anticipated that this impact would persist, stating: "It is likely that these developments will keep crude oil prices above the key support level of $55 until the end of the year, unless an unexpected peace agreement is reached in Ukraine."
In this context, market participants reported that Asian buyers are seeking significant discounts on their Venezuelan crude imports due to an influx of sanctioned oil from competitors like Russia and Iran, alongside rising operational risks associated with Venezuela due to increased U.S. military presence nearby.
Separately, investors are closely monitoring ongoing discussions regarding the Ukrainian crisis, particularly following a phone call between the leaders of the UK, France, and Germany with President Trump, which they described as a "decisive moment" in the political landscape.
