Oil prices rise again amid Middle East tensions

Oil prices rose again in the international market on Friday (June 5) amid ongoing tensions in the Middle East. The market recovered somewhat after a major drop the previous day. The rejection of a new ceasefire proposal in Lebanon and an explosion at a key oil terminal in Oman played a role in this.

The price of international benchmark Brent crude rose 33 cents, or 0.35 percent, to $95.36 per barrel on the day. Its price had fallen about 2.84 percent the previous day.

On the other hand, the price of US West Texas Intermediate (WTI) crude oil rose 2 cents to $93.06 a barrel, after falling 3.1 percent on Thursday.

Both types of oil are on track for their first weekly price increase in three weeks. WTI in particular has risen more than 6 percent over the week.

According to analysts, the prolonged peace talks between the United States and Iran, the threat of renewed conflict in the Middle East and the limited

ship traffic in the Strait of Hormuz have created concerns in the market.

In addition, there is a risk of a decline in global oil inventories, which analysts believe could lead to further price increases in the third quarter of the year.

According to market analyst Tony Sycamore, despite some positive signs, the uncertainty in the market has not yet subsided due to conflicting news.

On the other hand, OPEC Secretary-General Haitham al-Ghays said, Despite the Middle East conflict and limited activity in the Strait of Hormuz, the forecast for oil demand growth of 1.2 million barrels per day this year has been maintained.

According to shipping data, Iran's oil exports have fallen to a six-year low due to the US naval blockade. However, weak demand in China has also put some pressure on oil prices.

Source: Geo News