Oil prices rise in global markets

Oil prices rise in global markets Oil prices have risen again in the international market as tensions in the Middle East have increased. The tension was created by the downing of an Iranian drone by the US military in the Strait of Hormuz and the approaching of Iranian armed boats very close to US-flagged ships. According to a Reuters report, Brent crude futures rose 56 cents, or 0.8 percent, to $67.89 per barrel on Wednesday (February 4). At the same time, US West Texas Intermediate (WTI) crude oil prices rose 63 cents, or 1 percent, to $63.84 per barrel. The previous day, Tuesday, both indices had risen by about 2 percent. INGA commodity strategists said that there is still a risk premium in the market due to uncertainty about the future of negotiations between the US and Iran, which is putting pressure on oil prices. The US military shot down an Iranian drone that flew “aggressively” close to the US aircraft carrier USS Abraham Lincoln in the Arabian Sea on Tuesday. The same day, a group of Iranian gunboats in the Strait of Hormuz, where the Persian Gulf and Gulf of Oman meet, sped toward a US-flagged tanker north of Oman, maritime sources and a security consultancy said. Meanwhile, Tehran has said that any potential talks with the US should take place in Oman, not Turkey, and that the scope of the talks should be limited to nuclear issues, raising doubts about whether the meeting will even take place as planned. Satoru Yoshida, a commodity analyst at Rakuten Securities, said rising geopolitical tensions in the Middle East are currently supporting the oil market. It is worth noting that OPEC members Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export a large part of their crude oil through the Strait of Hormuz, the main destination of which is the Asian market. According to the US Energy Information Administration, Iran was OPEC's third-largest crude oil producer in 2025. In addition, a large decline in crude oil inventories in the United States has provided additional support for prices. According to the American Petroleum Institute, the country's crude oil inventories fell by more than 11 million barrels last week. Although the US Energy Information Administration is scheduled to release official data at 10:30 am local time on Wednesday, analysts surveyed by Reuters predicted an increase in inventories. Meanwhile, news of a US-India trade agreement on Tuesday also played a role in increasing oil prices. According to analysts, the agreement may increase global energy demand. At the same time, the fear of a long-term embargo on Russian oil as the Russia-Ukraine war continues is also affecting the market. Satoru Yoshida said, “The US agreement with India, which may limit Russian crude oil purchases, and the ongoing Russia-Ukraine war are both supporting oil prices. For now, WTI oil prices are likely to trade around $65 per barrel.”