On Wednesday, oil futures saw a rise, driven by growing Middle East tensions and a brighter global market outlook, affecting the US dollar.
On the New York Mercantile Exchange, March’s West Texas Intermediate (WTI) oil went up 0.75% to $73.86 a barrel.
Brent crude for April on the Intercontinental Exchange increased 0.79% to $79.21 a barrel.
Israeli Prime Minister Benjamin Netanyahu’s refusal of a ceasefire with Hamas hints at prolonged conflict in Gaza.
This situation, along with attacks on Red Sea ships by Yemen’s Houthi rebels, escalates regional tensions.
UBS predicts a supply shortfall in the oil market, pointing to OPEC+ cuts and possibly overrated US output.
UBS forecasts Brent could hit between $80 and $90 in the coming months, assuming demand stays firm and other countries don’t boost supply significantly.
The US Department of Energy reported a significant inventory jump of 5.5 million barrels last week, more than expected.
Yet, this was overshadowed by a softer dollar and a risk-friendly investor mood, keeping oil prices buoyant.
This dynamic illustrates how geopolitical developments and market sentiments directly impact oil prices, highlighting global events’ interconnectedness.