Oil prices saw a moderate increase today as investors weighed the supply risks stemming from ongoing Ukrainian attacks on Russian refineries and the potential for escalating conflict in the Middle East.
As of the latest updates, Brent crude for June delivery (CCOM:OILBRENT) was up by 0.42% at $89.29, while West Texas Intermediate (WTI) for May (CCOM:OILCRUDE) rose by 0.35% to $85.45. Both Brent and WTI experienced a surge to their highest levels since October the previous day. The market’s concerns are not only centered around the new wave of attacks but also the possibility of an expanded conflict in the Middle East, especially after Iran vowed retaliation against Israel for a Monday attack that resulted in the death of senior military officials.
Adding to the market’s jitters, Mexico’s state-owned energy company, Pemex, has reportedly asked its trading arm to cancel up to 436,000 barrels per day of crude oil exports this month as it gears up to process domestic oil at the new Dos Bocas refinery. Further, a recent earthquake in Taiwan prompted Formosa Petrochemical to briefly halt operations at its Mailiao facility.
Investors are also keenly awaiting updates from the upcoming OPEC+ panel meeting and stock data, which could provide further insights into the global oil supply and demand dynamics amidst these turbulent times. The convergence of geopolitical tensions, supply adjustments, and market anticipations underscores the volatile nature of the oil markets and the myriad factors influencing price movements.