Global oil prices remained near seven-month highs yesterday, supported by rising geopolitical tensions between the United States and Iran, despite growing American crude inventories indicating concerns about oversupply. Brent crude futures were trading around $71 per barrel in London, up about half a percent for the day, and close to their highest levels since late July.
West Texas Intermediate futures were near $65.8 per barrel, gaining about 0.3 percent and holding close to levels last seen in early August.
Both global benchmarks have risen nearly eight percent over the past month as traders factored in a higher risk premium related to tensions in West Asia. Markets are closely watching the possibility of confrontation between Washington and Tehran, which could disrupt crude supplies from the region. Iran is the third-largest producer in OPEC.
However, fresh data from the American Petroleum Institute showed that U.S. crude inventories rose by about 11.4 million barrels in the week ending February 20, highlighting concerns that global supply may still exceed demand. Traders are now awaiting official stockpile figures from the U.S. Energy Information Administration for further guidance on prices.
