On August 14, statistics indicated that there was considerable demand for oil in the United States and that tensions in the Middle East were rising.
On August 14, the price of Brent crude oil, which is used as a benchmark for global oil prices, rose by 0.7% to 81.25 USD/barrel, up from the closing price of 80%.69 USD/barrel the previous session, according to Anadolu News Agency.
US light sweet crude oil (WTI) closed at 78.35 USD/barrel on Friday, but it gained 0.7% to 78.92 USD/barrel today.
When the American Petroleum Institute (API) released data late on August 13 indicating that US crude oil stocks dropped by 5.2 million barrels far less than the 2 million barrel drop predicted by the market oil prices rose.
The US commercial crude oil inventory drop indicates rising domestic demand, which drives up prices.
Geopolitical conflicts throughout the globe are also impacting oil prices because of people’s concern of supply disruptions.
Due to “a clear imminent threat” to US and coalition forces in the region, the US Central Command said on August 13 that it had destroyed two Houthi ships in the Red Sea, a vital route for oil and gasoline tankers.
After Israel’s airstrike in Lebanon that killed senior military commander Fuad Shukr of Hezbollah and the assassination of Hamas political leader Ismail Haniyeh in Iran, observers fear that conflict will spread throughout the Middle East and jeopardize production activities in one of the world’s major oil-producing regions.
Iran has promised to respond, as have its allies.
Reuters reports that following a seven-month low of 76.3 USD/barrel early last week, Brent crude oil prices saw a five-day run of advances on August 12 that saw a gain of more than 3%, with the price ending at 82.3 USD/barrel.
