Crude oil prices increased slightly today as traders responded to supply expectations, global events, and investor sentiment. According to the latest data, West Texas Intermediate (WTI) crude reached $69.01 per barrel, up 1.07%, while Brent crude climbed to $72.85 per barrel, rising by 0.96%. Murban crude, a key benchmark from the UAE, saw a smaller increase of 0.45%, reaching $74.10 per barrel. In contrast, natural gas prices dropped slightly to $3.975 per million British thermal units (MMBtu), down by 0.13%.
The rise in oil prices follows a drop earlier in the week. Brent crude was trading at $71.92 per barrel, while WTI stood at $68.06 per barrel earlier today. Analysts say the increase is linked to continued buying, driven by U.S. sanctions on Iran’s energy sector and OPEC+ efforts to manage supply levels.
Russia-Ukraine Talks and OPEC+ Decisions Affect Prices
One key factor influencing prices is the ongoing discussion about a possible peace deal between Russia and Ukraine. If an agreement is reached, Russian oil exports may rise, which could impact global supply.
Toshitaka Tazawa, an analyst at Fujitomi Securities, told reporters, “Expectations of progress in peace negotiations between Russia and Ukraine and a potential easing of U.S. sanctions on Russian oil pressured prices lower earlier this week, but investors are now reassessing the balance of supply risks.”
OPEC+ is also in focus, as the group has announced plans to ease production cuts from April. This will add 138,000 barrels per day to the market, though some experts doubt whether all member countries will follow through with agreed production limits. ING analysts Warren Patterson and Ewa Manthey pointed out that speculative buying in Brent crude has increased, with net long positions rising by nearly 53,000 lots to 206,138.
U.S. Sanctions on Iran Support Higher Oil Prices
The U.S. government recently strengthened sanctions on Iran’s energy industry, adding pressure on oil supply. This move has encouraged more traders to buy crude, fearing potential disruptions from one of the world’s key oil producers.
“The anticipation of supply impact from U.S. sanctions on Iran has driven more crude buying,” said Patterson and Manthey. This suggests that while OPEC+ plans to add supply, political risks are keeping prices up.
Natural Gas Prices Fall Slightly
Unlike crude oil, natural gas prices dropped slightly today. Experts say this is due to forecasts of milder weather and lower demand. The decline highlights how different factors influence various parts of the energy market.
What’s Next for Oil Prices?
In the coming days, traders will be closely watching any updates on Russia-Ukraine negotiations, OPEC+ decisions, and U.S.-Iran tensions. Yeap Jun Rong, a market strategist at IG, told Reuters, “The OPEC+ production hike as early as April points to further supply additions, which may be difficult to be fully absorbed by demand factors.”
For now, crude oil prices remain on an upward trend, but uncertainties in global politics and supply changes will determine future movements.
