- Global oil prices rose for a second day amid U.S.-Iran geopolitical tensions
- WTI neared $65 a barrel while Brent crude stayed above $69, per Bloomberg
- U.S. crude inventories surged 8.5 million barrels to highest since June
Global oil prices rose for a second day as heightened geopolitical tensions between the United States and Iran continued to overshadow data showing a significant jump in U.S. crude inventories.
West Texas Intermediate (WTI) climbed toward $65 a barrel Thursday after adding more than 1% in the previous session, while Brent crude held steady above the $69 mark, as reported by Bloomberg.
The market remains on edge as U.S. President Donald Trump, following high-stakes talks with Israeli Prime Minister Benjamin Netanyahu, signalled a desire for a nuclear deal with Tehran while maintaining a posture that includes potential military strikes.
The price rally persists despite a bearish report from the U.S. Energy Information Administration (EIA), which showed domestic crude stockpiles surged by 8.5 million barrels last week—hitting their highest levels since June. Goldman Sachs analysts noted that while a global surplus is emerging, it is currently concentrated in regions less critical for immediate price-setting, allowing geopolitical risk premiums to dominate.
Supply-side pressure was further underscored by OPEC+ data showing a production decline of 439,000 barrels per day in January, largely due to output losses in Kazakhstan, Venezuela, and Iran.
For the Indian market, the price volatility coincides with a major shift in trade policy. Under a recent U.S.-India trade deal, Washington claims New Delhi has committed to halting Russian crude imports in exchange for a reduction in U.S. import tariffs from 25% to 18%. While the Indian government emphasises that "energy security" remains its supreme priority, industry reports suggest domestic refiners are already diverting March and April orders away from Russia toward more expensive Atlantic Basin and Middle Eastern grades.
The International Energy Agency is expected to release its monthly market outlook later Thursday, which may further highlight the tension between current geopolitical risks and an anticipated global supply glut later in 2026.
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