Oil prices edged higher in early trade on Thursday, extending their upward momentum as market participants assessed supply dynamics and global demand signals. At 6:36 am, US crude oil was trading at USD 91.41 a barrel, up 1.21 per cent, while Brent crude climbed 1.16 per cent to USD 103.40 a barrel.
Oil prices fell sharply on Wednesday as signs of easing geopolitical tensions in the Middle East weighed on sentiment. Brent crude slid around 4.4 per cent, dropping below the USD 100‑a‑barrel mark to trade near USD 99.92 per barrel, while US West Texas Intermediate (WTI) crude settled around USD 89 per barrel. Earlier in the session, Brent was quoted at USD 100.39 a barrel, highlighting the scale of the late‑day decline.
The sell‑off came as US diplomatic efforts raised hopes of a de‑escalation in the region, easing concerns over supply disruptions. Markets drew optimism from reports of a 15‑point US proposal and discussions around a potential 30‑day ceasefire, including engagement with Iran. The pullback in oil prices also helped temper inflation worries, reducing expectations of further interest‑rate hikes and offering relief to broader financial markets.
At the start of the week, Citi flagged heightened risks in the global energy market, warning that disruptions to the gas supply chain could prove more severe and longer‑lasting than those affecting oil, even as crude prices remain volatile.
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