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Oil prices jump as Middle East strikes return and inventories fall

Brent was up 4.6% to about $88.0 a barrel, while U.S. crude stockpiles fell around 3.3 million barrels last week, according to the API.

Reported · Written up by our desk · Energy

Oil prices rose sharply in early Asian trade as renewed fighting in the Middle East lifted the geopolitical risk premium, according to OilPrice. Brent crude was last around $87.95 per barrel, up 4.59%, and West Texas Intermediate was around $82.89, up 4.58%, as gains erased much of Tuesday’s selloff.

The renewed tensions follow the end of a short pause in hostilities after the U.S. ended 13 consecutive nights of attacks on Iran, OilPrice said. U.S. Central Command reported that Iranian forces launched multiple ballistic missiles at U.S. bases across the region, with all incoming missiles intercepted and no U.S. positions hit, and then the U.S. and Saudi forces carried out precision strikes in eastern Iraq.

OilPrice also pointed to inventory dynamics adding support to prices. The American Petroleum Institute reported U.S. crude stockpiles fell by about 3.3 million barrels last week, and the U.S. Strategic Petroleum Reserve released 3.7 million barrels, described as the lowest level since March 1983.

The combination of renewed hostilities and tighter U.S. crude supplies contributed to the upward move in crude, OilPrice said, coming after hopes for a diplomatic breakthrough were undermined late Tuesday.

Latest closeWTI crude $81.23 ▼1.7%|Brent $85.92 ▼2.8%

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