12.06.2025 07:46
West Texas Intermediate (WTI) crude oil experienced a slight dip, settling near $66.50 per barrel in early European trading on Thursday. This followed a recent peak of $67.82, representing a two-month high. However, despite this minor pullback, downward pressure on prices appears limited.
Concerns over potential supply disruptions are currently bolstering oil prices. These concerns stem from escalating geopolitical tensions in the Middle East, specifically the rising conflict between Israel and Iran. Reports from various internet sources, including those from CBS News, indicate that Israel is poised for potential military action against Iran, a development that could severely impact global oil supplies. Simultaneously, the United States has reportedly reduced its personnel presence in the region, reflecting the heightened risk.
Further fueling this upward pressure on oil prices is increased optimism surrounding global energy demand. A recent easing of trade tensions between the US and China, the world's two largest oil consumers, contributes to this positive outlook. Statements from President Trump, disseminated via Truth Social, suggest a finalized trade deal is imminent, pending final approval from both himself and Chinese President Xi Jinping. This agreement, characterized by President Trump as resulting in significant tariff advantages for the US, signals a potential boost to economic activity and consequently, energy consumption.
In short, while WTI experienced a temporary decline, the confluence of geopolitical instability in the Middle East and renewed optimism regarding US-China trade relations is expected to provide significant support for oil prices in the near future. Upcoming nuclear talks between the US and Iran, scheduled for Sunday, will undoubtedly remain a key factor influencing market sentiment and price fluctuations.
