Oil Prices Edge Higher on Supply Concerns and Middle East Risks

Oil market indicators continue to suggest the physical market remains tight. Photo: Shutterstock

Oil prices saw moderate gains on Thursday, with Brent crude rising 0.5% to $68.83 per barrel and U.S. West Texas Intermediate (WTI) up 0.9% to $66.99, as reported at midday GMT.

The uptick comes despite signs of easing global trade tensions, as analysts point to persistently low inventories and renewed geopolitical risks in the Middle East. Drone attacks in Iraq’s Kurdish region have disrupted oil production by as much as 150,000 barrels per day, further tightening supply.

According to PVM Oil Associates, market attention is shifting back to regional conflicts, including Israeli strikes in Syria and infrastructure attacks. The International Energy Agency recently noted that even increased oil output hasn’t replenished inventories, signaling strong market demand.

While near-term prices may remain volatile due to uncertainty over U.S. trade policy, analysts at UBS warn that long-term risks to demand could still weigh on prices.

Kursiv Uzbekistan also reports that more than 20 world leaders and heads of 10 international organisations take part in the upcoming Shanghai Cooperation Organisation (SCO) summit.