As tensions in the Middle East continue to escalate, oil prices are on the rise in early Asian trading hours. Brent crude futures climbed 0.12% to $77.71 a barrel, while U.S. West Texas Intermediate crude futures rose 0.11% to $73.79 a barrel, with both benchmarks set for weekly gains of approximately 8%.
President Joe Biden’s mention of potential strikes on Iran’s oil facilities in retaliation for a missile attack on Israel contributed to a 5% surge in oil prices. Despite fears of supply disruptions in the region, OPEC’s spare production capacity and uninterrupted global crude supplies have alleviated some concerns.
In Libya, the reopening of all oilfields and export terminals following a leadership dispute over the central bank has boosted production levels. Iran and Libya, both OPEC members, play significant roles in global fuel production. Iran produced around 4.0 million barrels per day in 2023, while Libya produced approximately 1.3 million bpd last year, as per the US Energy Information Administration.
The delicate balance between geopolitical tensions and global supply dynamics continues to influence oil markets, with investors closely monitoring developments in the Middle East.