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Oil Firms On Middle East Geopolitical Concerns
['Rekha Nair']
Business News This Week
By Konstantinos Chrysikos, Head of Customer Relationship Management at KudotradeCrude oil extended its rally for a third consecutive session today, supported by rising geopolitical tensions, severe winter weather disrupting US output, and a surprise draw in US crude inventories.
Markets reacted to renewed geopolitical risk sin the Middle East.
President Trump has renewed pressure on Iran, while a US naval group’s arrival in the region has fueled disruption fears.
The bullish tone was reinforced by EIA data showing US crude inventories fell by 2.3 million barrels, versus expectations for a 1.8 million-barrel build.
The market could continue to face the risk of an oversupply, which could cap short term gains and weigh on the market long term.