Oil prices rise due to tensions in the Middle East

The global oil markets witnessed a new upward wave on Wednesday, as the futures contracts for WTI crude jumped to exceed the barrier of 63 dollars per barrel, recording their gains for the third consecutive session.

The jump is a direct reflection of the escalation of geopolitical tensions in the Middle East, which has raised traders fears of a possible disruption in global oil supply flows.

Multiple attacks raise prices

In the most notable development, Israel targeted the leadership of the Hamas movement in the Qatari capital Doha, and given Qatar's role as a major energy exporter and a prominent regional diplomatic mediator, any threat to its stability would shake the confidence of the markets and affect the prospects for oil supply.

Israel has also carried out operations in Iran, Syria, Lebanon and Yemen in less than a year.

Additional supporting factors

These tensions did not come in a vacuum, but were joined by fundamental supporting factors for crude prices.

The monthly increase in OPEC alliance production for October was very modest compared to the increases of the previous months, which further tightened market conditions.

Trade statements also add another layer of complexity, as it was reported that former US President Donald Trump urged the European Union to impose 100% tariffs on goods coming from China and India, in a move described by observers as aimed at putting pressure on Russian President Vladimir Putin, with the United States indicating its intention to apply similar duties.

US stocks are climbing - but the impact is limited

On the other hand, some factors tried to control the upward heat, as the US crude oil inventories data released by the American Petroleum Institute (API) showed a jump of 1.25 million barrels last week, after an increase of 0.62 million barrels in the previous week.

Rising inventories usually restrain prices, but this time it was not enough to balance the strong impact of geopolitical concerns on trader sentiment, but rather slowed the rise in oil prices somewhat.

In general, prices remain sensitive to any new developments in the region, as the market is waiting for any news that could lead to disruption of actual supplies from one of the main producers.