Oil prices saw a modest increase on Wednesday, driven by escalating tensions in the Middle East and the expectation that OPEC+ will extend supply cuts. The international benchmark, Brent crude, rose by 0.23%, reaching $73.71 per barrel at 10:53 a.m. local time (0753 GMT), compared to $73.54 in the previous session’s close. Similarly, the US benchmark, West Texas Intermediate, gained 0.16%, rising to $69.87 per barrel from $69.76.
Tensions in the Middle East have added upward pressure on oil prices, as the Zionist entity continued airstrikes on Lebanon despite a cease-fire deal that took effect on November 27. Lebanese Prime Minister Najib Mikati confirmed that diplomatic efforts are underway to halt Zionist violations and ensure Zionist withdrawal from border towns. However, Zionist war minister warned of targeting Lebanese state infrastructure if the cease-fire collapses.
On the supply side, OPEC+ is expected to extend its production cuts through the first quarter of 2025 when it announces its policy decision on Thursday. While OPEC+ has been looking to phase out the cuts, concerns over a potential market surplus have kept oil prices in check.
Additionally, the American Petroleum Institute reported a surprise increase in US crude oil inventories by 1.23 million barrels, which dampened market expectations of a price surge. Official data from the Energy Information Administration is expected later today.
