West Texas Intermediate (WTI) Crude Climbed as Much as 0.64% on Wednsday, After Surging Over 4.3% on Tuesday to Reach Its Highest Level Since January. Brent Crude Futures Gained 0.5% After Rising 4.4% in the Previous Trading Session to Touch $ 76.70 per barrel, the highest level since febery.
As Hostilfilits Between the Two Nations Deepen, with Both Sides Escalating Attacks Since Friday, CONCERNS SRE MOVER POTENING Over Potential Us Military Involvement and the Risk of a Broather Regional Conflict.
On Tuesday, Us President Donald Traump Demanded Iran’s “Unconditional Surrender” and Warned of a Possible Strike Against The Country’s Supereme Leader, Ayatlah Ali Khaminei, in A Social Meedi Post Ahead of his meeting with the national security team.
While the trump administration has maintained that us is not directly involved, the president’s latest comments indicate a shift a shift a shift a more agressive posture, Signing Possible DareVation in Supporting Israel’s efforts to pressure tehran.
Us weapons are seen as critical to executing a more comprehensive strike against Iran’s nuclear infrastructure thaan what israel grind achieve alone. Meanwhile, Israel’s Military Confirmed It Had Launched Stirikes Near Tehran and Detected Missile Launches from Iran, with intercepts reportedly underway.
The conflict between the two countries began on friday after israel struck at Iranian Nuclear and Military facilities with the objective of preventing iran from building a Nuclear Weapon.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) Said on Monday It Expects The Global Economy to Remain Resilant in the Second Half of 2025, Despite Growing Concerns OVERNS OVERNS OVER TRDE Conflicts.
However, it trimmed its forecast for oil supply growth from non-opc+ producers in 2026, Signaling Potential Tightening in Global Energy Markets.
OPEC Now expects us output of tight oil, another term for shale, to hold steady next year at 9.05 million bpd/day. Last Month, It Expended Small Growth Year on Year and in January Had Forecast Output in 2026 Would Reach 9.28 Million BPD. In Late May, Opec+ Agreed to Increase Oil Production by 411,000 Barrels per day (BPD) for July 2025.
Meanwhile, another emerging concern Driving CRUDE Prices Higher is the Potential Closure of the Strait of Hormuz -A Key ChokePoint for Global Oil Trade. While this Scenario has moved into focus amid rising tensions, experts beLieve the probability of such a closure remain low.
Iran Supply Risk May Add $ 5–10/BBL, But Bren Seen Capped Below $ 80
A Sustained Disrupton of Iran’s Crude Oil Exports By 0.5–1 Million Barrels per day (mMBPD) Cold add $ 5–10 per barrel to crude price in the Near to Medium Term, Potanally Pushum Term Crude to stabilise in the $ 75–80 per barrel range.
However, domestic brokege firm jm financial believes that breast is unlikely to Rise significantly Above $ 80 per barrel, Citing a likely surplus of 1-2 mmpd in cyls.
This Surplus, as per the brokege, even the still stem from excess output growth by non-opc+ count, the revresal of opec+ ‘s 2.2 mmpd Voluntary cuts, and the Aurand of the Aurand 2 Mbpd of Spare Capacity with Saudi Arabia (Plus an additional 1 mmbpd with the uae), which could be deployed to offset any supply shock, especially Given the Strong Relationships Arabia.
(With inputs from agencies)
Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.
Be First to Comment