A surprising increase in US commercial crude oil inventories has ignited market speculation as geopolitical tensions simmer in the Middle East. The US Energy Information Administration reported a 1.4-million barrel build in oil stockpiles for the previous week, a stark contrast to the American Petroleum Institute’s estimate of a 5.2 million barrel decline.
Analysts attributed the unexpected inventory rise to a potential pause in escalating conflicts. However, they cautioned against complacency, emphasizing the highly volatile and uncertain global oil market. A research firm highlighted the persistent geopolitical risks stemming from Iran’s vow for retaliation against Israel.
Concerns over a potential disruption of oil shipments through the Strait of Hormuz, a critical chokepoint for global crude supplies, have escalated. Experts warned that such a scenario could trigger a significant surge in oil prices, potentially as high as $10 per barrel. The volatile situation in the Middle East, characterized by proxy conflicts and unpredictable actors, has heightened market anxiety and underscored the fragility of the global oil supply chain.
Tags API Data EIA data Oil Prices volatility
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