Victor EzejaIn the early hours of GMT+1, Brent crude hit $82.65 per barrel, reflecting a market grappling with uncertainties.
U.S. WTI crude futures saw a 0.4% rise, reaching $77.09, bouncing back from Monday’s dip fueled by fears surrounding Chinese demand and the China Evergrande Group’s liquidation.
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“This market tension is not just about demand but also heightened concerns about oil supply,” emphasized analysts in response to the U.S. vow for decisive action following a deadly drone attack in Jordan.
This incident, marking the first U.S. military casualties since the Israel-Gaza war, adds a layer of complexity to an already precarious situation.
A recent assault on a Trafigura oil tanker in the Red Sea has intensified worries about oil supply disruptions, with ANZ analysts linking it to the escalating risk of U.S. involvement.
The Commonwealth Bank of Australia warned that if U.S.-Iran tensions escalate, there’s a looming threat to Iran’s oil supply, potentially impacting 1-1.5% of global oil supply.
The surge in oil prices precedes the Federal Reserve’s upcoming rate decision, adding another dimension to market dynamics. Investors anticipate the Federal Open Market Committee’s meeting, speculating on a potential shift in the U.S. central bank’s hiking bias.
As geopolitical tensions continue to influence oil markets, eyes are also on the American Petroleum Institute’s stockpiles data on Tuesday and the Energy Information Administration’s report on Wednesday, expecting fluctuations in crude oil, distillates, and gasoline inventories.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
