Global oil prices surge amid geopolitical tensions

WEB DESK: Global oil prices continued their upward trend on Friday, driven by geopolitical tensions and production cuts, which overshadowed concerns about potential rate cuts by the U.S. Federal Reserve.

Brent crude hovered around $90.73 per barrel, marking a 0.18 per cent increase for the day, while West Texas Intermediate crude (WTI) stood at $86.41 per barrel, reflecting a 0.17 per cent rise.

In quarterly terms, Brent surged by 12.9 per cent in the first quarter of 2024, with WTI also posting a substantial increase of 15.8 per cent.

Thursday’s closing saw both contracts reaching their highest levels since October. The uptrend persisted after the market closed, fueled by mounting geopolitical tensions and perceived supply risks, as reported by Reuters.

The spike in oil prices on Thursday followed reports of heightened security measures at Israeli embassies worldwide due to escalating threats of an Iranian attack on Israeli diplomats.

Iran, OPEC’s third-largest producer, pledged retaliation against Israel following an attack on Monday that resulted in the death of senior Iranian military figures.

Israel has not taken responsibility for the incident at Iran’s embassy compound in Syria.

In a notable shift in stance, Washington issued a stern public rebuke to Israel on Thursday, its most forceful since the conflict with Hamas began.

The U.S. stressed that its policy towards Gaza would be contingent on Israel’s actions to ensure the safety of Palestinian civilians and humanitarian workers.

The United States imposed new counter-terrorism sanctions on Oceanlink Maritime DMCC and its vessels on Thursday, citing their involvement in shipping commodities for the Iranian military.

Meanwhile, in Baghdad’s heavily fortified Green Zone, plans for the future Rixos Baghdad, a luxury hotel funded by Qatar, are underway.

The Treasury Department disclosed that the U.S. is employing financial sanctions to isolate Iran, aiming to disrupt its financing of proxy groups and impede its support for Russia’s conflict in Ukraine.

Additionally, U.S. Secretary of State Antony Blinken reiterated unwavering support for Ukraine’s NATO membership, stating that backing for the country remains steadfast among member states.

Oil’s recent surge has also been fueled by Ukrainian strikes on Russian refineries, leading to disruptions in fuel supply.

Furthermore, Mexico’s state energy company, Pemex, requested its trading unit to halt up to 436,000 barrels per day of crude exports this month in preparation for processing domestic oil at the new Dos Bocas refinery.