Brent crude oil prices in the North Sea reached $96.15 per barrel by 10:30 AM on Thursday (November 14), indicating a 1.6% increase or $1.53 compared to the previous day.
Increase in WTI Crude Oil Prices
WTI crude oil prices in the U.S. also rose by 52 cents or 0.6%, trading at $88.64 per barrel. These price increases are due to political and economic developments in the Middle East that have attracted investors' attention.
Oil Market Analysts
Giovanni Staunovo, a commodity analyst at UBS, stated that the situation in the Middle East remains uncertain, which has contributed to a relative improvement in prices in the market. He also noted that Brent oil prices are more affected by geopolitical factors, while U.S. oil serves as an indicator for the domestic market of the country.
On Wednesday (November 13), the prices of both types of oil benchmarks had dropped by more than 8%, reaching their lowest level since August 31 (September 9). These price changes occurred following international tensions and the U.S. and Israeli regime's war against Iran in February, which led to increased fuel prices for American consumers and is one of the main reasons for voter dissatisfaction.
Forecasting Oil Price Fluctuations
Jun Guo, a senior oil analyst at Sparta Commodities, stated that further price fluctuations are expected, as the diplomatic path to end tensions remains unclear. Additionally, global strategic oil reserves have significantly decreased.
The Eurasia Group has predicted that escalating tensions could lead to a sharp increase in prices, with Brent crude oil prices reaching $110 to $125 per barrel. Mukesh Sahdu, CEO of energy consulting firm XAnalysts, also pointed to the decline in commercial oil reserves in major consuming countries, which have reached their lowest level in 15 years.
The U.S. Energy Information Administration reported that with demand growing to its highest level in a year, crude oil, gasoline, and petroleum product inventories in the U.S. decreased last week.
Read more: Brent crude oil prices drop below $94 · Oil prices decrease following electoral changes in Iran
