Oil Prices Climb on Mixed Demand, Supply Expectations
Oil prices climbed on Wednesday over mixed demand and supply expectations in the global commodity market. The ongoing Israel-Iran tensions raised supply concerns, but US inventory data pointed to strong demand.
International benchmark Brent crude rose by 0.4%, trading at $67.15 per barrel, up from $66.86 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) increased by about 0.5%, reaching $65.05 per barrel, compared to $64.72 in the prior session.
Israeli Prime Minister Benjamin Netanyahu declared that the 12-day conflict had ended with Iran’s nuclear program being “dismantled,” warning of further strikes should Tehran resume its nuclear ambitions. “Iran will not have a nuclear weapon,” Netanyahu said in a video posted to social media.
However, US intelligence assessments suggest the airstrikes only delayed Iran’s nuclear progress by a few months, falling short of fully crippling its capabilities. The developments heightened concerns over potential oil supply disruptions in the region, fueling market fears of more severe attacks in the future.
Moreover, despite the ceasefire, tensions remain elevated. The Israeli military said it intercepted two Iranian drones near its borders on Tuesday evening, possibly launched before the truce took effect.
Israeli defense officials also accused Iran of firing a ballistic missile Tuesday morning in breach of the agreement, prompting retaliatory airstrikes on a radar facility in Tehran.
US President Donald Trump also acknowledged violations by both sides, stating, “I’m not happy with Iran either, but I’m really unhappy with Israel going out this morning.”
The renewed involvement of the US in the regional conflict has amplified investor concerns over the security of oil shipments through the Strait of Hormuz, a critical chokepoint through which roughly 20 million barrels of oil and refined products—around 20% of global consumption-flow daily.
Meanwhile, the American Petroleum Institute (API) reported that US crude oil stocks fell by 4.27 million barrels last week, contrary to expectations. Market expectations were for stocks to decrease by 600,000 barrels. The data, signaling stronger demand in the world’s top oil consumer, gave upward support to prices.
The US Energy Information Administration (EIA) is expected to release official inventory data later today. If the drop is confirmed, the upward trend in prices is expected to continue. #Oil Prices Climb on Mixed Demand, Supply Expectations Nigerian Exchange Index Hits All-time High in Explosive Rally
