Oil rebounds by over USD 2 a barrel amid US supply concerns

Oil prices surged by more than USD 3 a barrel on Wednesday, driven by escalating geopolitical tensions in the Middle East and a decline in US crude inventories.

 

Brent crude rose USD 3.30, or 3.9%, to USD 87.39 a barrel, while US West Texas Intermediate (WTI) gained USD 3.05, or 3.8%, to USD 82.31 a barrel.

 

The rally followed joint US and Saudi military strikes in Iraq and the interception of Iranian ballistic missiles targeting US forces in the region, raising concerns over potential disruptions to global oil supplies. Prices were further supported by a drawdown in US crude stockpiles, signalling tighter supply conditions.