INSUBCONTINENT EXCLUSIVE:
Oil markets rallied on February 11, 2025, as geopolitical tensions and supply disruptions drove prices to two-week highs
West Texas Intermediate (WTI) crude for March delivery closed at $73.32 per barrel, gaining 1.38%.Meanwhile, Brent crude for April rose
1.49% to settle at $77.00 per barrel
The surge reflected a complex interplay of sanctions, production shortfalls, and escalating Middle East tensions.The fragile ceasefire in
Gaza deteriorated after U.S
President Donald Trump warned Hamas to release hostages by Saturday or face severe consequences
Israeli Prime Minister Benjamin Netanyahu echoed the sentiment, further fueling fears of renewed conflict in the region.These developments
added to existing supply concerns tied to U.S
sanctions on Russian and Iranian oil exports
Russian crude production fell below its OPEC+ quota in January, with sanctions disrupting shipments to major importers like China and
India.Analysts noted that several million barrels of Russian oil remain stranded due to blocklisted tankers
measures targeting Iranian oil shipments have tightened global supply chains, amplifying pressure on prices.Oil Prices Surge Amid
Geopolitical Strains and Supply Concerns
(Photo Internet reproduction)The Energy Information Administration (EIA) maintained its Brent price forecast at $74 per barrel for 2025 but
highlighted potential volatility
The agency reported that U.S
oil production would reach 13.59 million barrels per day this year, slightly exceeding earlier estimates.Global Oil Market DynamicsHowever,
global demand growth remains tepid, raising concerns about long-term market stability
Market sentiment also reflected technical factors
Brent crude traded above key moving averages, signaling bullish momentum despite resistance near $78.19 per barrel.WTI showed signs of a
potential trend reversal after breaking through $73, supported by tightening supplies
Trade policy added another layer of uncertainty.The U.S
imposed new tariffs on steel and aluminum imports, prompting fears of economic slowdowns that could dampen energy demand
However, these concerns were outweighed by immediate supply risks.Analysts expect further inventory builds in the U.S., with preliminary
data forecasting a 2.8-million-barrel increase last week
This could temper price gains if confirmed by official figures tomorrow.
