Oil prices rise amid concerns about supply disruptions, geopolitical events

(MENAFN) Oil prices continued their upward trajectory on Wednesday, driven by mounting apprehensions surrounding the availability of supplies following Ukrainian attacks on Russian refineries. Additionally, the looming possibility of an escalation of conflict in the Middle East added to the market's anxieties. Despite these factors, the OPEC+ coalition's senior ministers opted to maintain the current oil production policy, keeping cuts unchanged.

In terms of price movements, brent crude futures for June delivery experienced a notable increase of 75 cents, equivalent to 0.84 percent, reaching USD89.67 per barrel by 11:30 GMT. Similarly, US West Texas Intermediate crude futures for May delivery climbed by 73 cents, or 0.86 percent, reaching USD85.88 a barrel.

The decision by the OPEC+ alliance, comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies, to uphold the existing oil production policy follows last month's agreement to extend the current production cuts until June. The sustained high prices reflect the market's response to these geopolitical tensions and supply concerns.

Notably, both Brent and West Texas Intermediate crude oil surged by 1.7 percent in the previous session, reaching their highest levels since October. Tuesday's price surge was largely precipitated by a Ukrainian drone attack on another Russian refinery, heightening fears of further disruptions to Russia's refining capabilities.

As geopolitical uncertainties persist and supply disruptions remain a significant concern, market participants continue to closely monitor developments in the oil market, with any escalation in geopolitical tensions likely to exert further upward pressure on oil prices.

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