Lagos — Crude oil futures rose in the face of rising geopolitical tensions in the Middle East, sparked by reports that Israel may be preparing a strike on Iranian nuclear facilities.
The prospect of such operations has heightened fears of supply disruption in a region central to global oil production, lending strong support to crude prices.
However, additional production from Kazakhstan and Norway and increasing U.S. crude inventories could weigh on the market to a certain extent if Iran fears subside.
Looking ahead, crude oil prices could remain volatile as traders react to new developments. Any progress in U.S.-Iran nuclear talks could ease geopolitical concerns and weigh on prices.
Conversely, failure to reach an agreement or any escalation would likely sustain price support. Meanwhile, traders could also react to the release of EIA figures later today.
*Osama Al Saifi, Managing Director for MENA at Traze
