Global oil prices are rising: main factors behind the increase
12 February 10:12
Oil prices rose on Thursday, February 12, as investors were concerned about escalating tensions between the US and Iran and feared that possible strikes on Tehran or tankers could disrupt oil supplies.
This was reported by "Komersant Ukrainian" with reference to Reuters.
Brent crude futures rose 0.35% to $69.64 per barrel, while WTI futures rose 0.43% to $64.91 per barrel.
Agreement with Iran under threat
US President Donald Trump said after a call with Israeli Prime Minister Benjamin Netanyahu on Wednesday that the parties had not reached a final agreement on further steps regarding Iran, but stressed that dialogue with Tehran would continue.
The date and venue of the next round of US-Iran talks have not yet been announced.
Main reasons for the rise in oil prices
A sustained break above the $65-$66 range required further escalation in the Middle East, while signs of de-escalation could quickly trigger profit-taking and a pullback in WTI prices towards $60-$61, said Tony Sycamore of IG. U.S. employment growth unexpectedly accelerated in January, and the unemployment rate fell to 4.3%, the Labor Department reported on Wednesday.
“The resilience of the US economy also supports expectations of strong oil demand,” said Minyu Gao of China Futures.
A significant increase in US oil inventories limited the rise in prices, which rose by 8.53 million barrels in a week.
