Oil prices rose on Wednesday due to concerns over availability of fuel and crude following strikes on Russian refineries by the Ukrainians and the possibility of the Israel-Hamas conflict expanding to include Iran.
US West Texas Intermediate crude futures rose by 0.08% to $85.22 per barrel, while Brent crude futures for June rose by 0.19% to $89.09 per barrel. The prices rose after a drone strike by Ukraine on a second Russian refinery raised the possibility of shutting down even more of the nation’s processing capacity.
Oil prices hit a five-month high due to geopolitical tensions that could disrupt supply.Mexico’s Pemex stopped crude exports to prepare for domestic oil processing at a new refinery. Last week, US crude inventories saw a decline of 2.3 million barrels.
Analysts predicted a 1.5 million barrel drop in the US inventory report expected on Wednesday. OPEC+ meeting on Wednesday will not suggest changing the organization’s oil output strategy, according to five OPEC+ sources.
