Oil Prices Up Ahead Of OPEC+ Meeting Due To Supply Concerns


(MENAFN- AzerNews) Oil prices increased on Wednesday after reaching five-monthhighs due to strong demand forecasts in the US, the world's biggestoil consumer, and rising concerns over global oil supply routes inthe Middle East, Azernews reports, citing AnadoluAgency.

International benchmark Brent crude traded at $89.07 per barrelat 12 p.m. local time (0900 GMT), a 0.17% increase from the closingprice of $88.92 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at$85.19 per barrel at the same time, a 0.05% rise from the previoussession that closed at $85.15 per barrel.

Oil prices tested the highest levels of the last five months dueto conflicts between Israel and Palestine and the Russia-Ukrainewar.

The possibility of a further decline in Russian oil exportscontinues to support higher prices.

Furthermore, a missile strike targeting the Iranian Consulate inthe Syrian capital, Damascus, resulting in the killing of a topcommander of Iran's Islamic Revolutionary Guard Corps (IRGC) andsix other officers, is exacerbating tensions in the Middle East,where busy energy supply routes are located.

American Petroleum Institute (API) data released late Tuesdayshowing a decrease of 2.3 million barrels in US crude oilinventories, against the market expectation of a draw of 2 millionbarrels, signaled healthy demand and drove prices up.

However, geopolitical unrest and the decline in US crudeinventories prompted profit-taking by investors, limiting upwardprice movements ahead of the OPEC+ group meeting that will be heldlater on Wednesday.

Analysts predict that the group will refrain from making anychanges to its future production policy.

Official statistics from the Energy Information Administration(EIA) will be released later in the day, and if a buildup in crudeand gasoline stockpiles is predicted, prices will come underpressure.

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