The price of oil edged up on Tuesday’s session after possibilities that oil output is at risk to be disrupted. Supply in the Middle East might also be affected due to the tensions happening there.
Traders across the globe are suggesting that oil markets are currently receiving a huge support, following an expectation that there were risks of output disruptions. Some of these are the likability of a spreading conflict surrounding the Middle East. A possible economic crisis in Venezuela and the renewed sanctions of the United States against Iran that might result in political crisis there is also a factor.
Looking at prices, U.S. West Texas Intermediate (WTI) crude futures rose more than 0.6 percent or 39 cents to settle at $66.61 per barrel. Meanwhile, the international benchmark for oil prices London Brent crude advanced as high as 0.5 percent or 38 cents to finish at $71.80 a barrel.
OANDA’s head of trading for Asia-Pacific Stephen Innes said that global traders are continuously paying the geopolitical risk premium, given that there are a number potential supply disruptor that are currently playing, but only a few signs that the market turbulence will conclude sooner. Innes added the price of oil should remain bid until the nuclear agreement in Iran which is due May 12.
Markets are continuously being supported this 2018 due to the healthy demand for the efforts of Organization of the Petroleum Exporting Countries (OPEC) on trimming production in order to curb the bloated market.