U.S. crude oil prices recorded consecutive weekly gain

U.S. crude oil prices recorded consecutive weekly gain. Driven by escalating tensions in the Middle East. Concerns over the potential disruption of oil supplies from the region, particularly amid the ongoing Israel-Hamas conflict, have sparked volatility in the global energy markets. Investors fear that further escalation could impact key shipping routes and production facilities, leading to tighter supply.

This week, U.S. crude rose by nearly 4%, closing at over $90 per barrel, as geopolitical risks outweighed concerns about slower demand growth. The Middle East, a major global oil supplier, has become the focal point of market attention as fears of broader regional conflict loom. With key players like Saudi Arabia and Iran involved, traders are wary of potential supply disruptions that could send prices even higher.

Analysts point out that while the global oil market has remained relatively stable, the uncertainty in the Middle East could trigger sharp fluctuations. Tensions in the region have historically led to significant price hikes, as disruptions to the oil supply chain affect global markets.

Recently, Oil Prices Rise on US Crude Stock Decline. Oil prices saw a slight uptick today, driven by a drop in US crude inventories. The American Petroleum Institute (API) reported a significant decline in crude stock levels.

Additionally, U.S. crude production levels and inventory reports will be closely monitored as traders seek to assess the balance between supply risks and demand factors. A combination of geopolitical tensions and fluctuating production levels may lead to sustained price increases in the near term.

As the situation unfolds, oil traders are preparing for further volatility, with many expecting prices to remain elevated in the coming weeks. The ongoing conflict in the Middle East, coupled with broader supply chain challenges, has heightened market anxiety, making oil a key focus for investors and policymakers alike.

With the war risk in the Middle East showing no signs of abating, the global oil market remains on edge, as any further disruption could exacerbate supply shortages and push crude prices even higher.