Oil Prices Rise For Third Consecutive Week

(MENAFN- Yolo Wire) %CrudeOil prices are rising and on track to post a third consecutive week of gains following a decline in U.S. inflation and as the Middle East war between Israel and Hezbollah intensifies.

West Texas Intermediate (WTI) crude oil is trading at $82.11 U.S. per barrel, its highest level since April 30 of this year.

Brent crude oil, the international standard, is currently at $86.72 U.S. a barrel, its highest level in two months.

As June draws to a close, U.S. oil is up nearly 7% for the month.

Oil prices are rising as a key measure of inflation in the U.S. showed that consumers prices in the world's biggest economy rose at an annualized rate of 2.6% in May, the slowest pace of growth in three years.

At the same time, growing conflict between Israel and Hezbollah is raising fears of a direct confrontation with %OPEC member Iran that could disrupt crude oil supplies globally.

Analysts say a widening Middle East conflict could see Hezbollah target Israel's offshore oil and gas operations, while Israel could target Iranian oil facilities.

There is also a risk that Iran could attack oil tankers in the straight of Hormuz and abandon a peace pact with Saudi Arabia and hit the Kingdom's oil facilities, warn energy analysts.

Some traders are now forecasting that crude oil prices will top $90 U.S. a barrel this summer.

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