Oil Prices Rise Slightly as US Oil Supplies Fall and Tensions Grow in the Middle East
Oil prices went up a little on Thursday after US crude stockpiles fell, showing strong demand. However, investors stayed cautious because of ongoing uncertainty about the Israel-Iran ceasefire and overall stability in the Middle East.
Oil Prices Update
On Thursday, Brent crude oil went up slightly by 0.07% to $67.73 per barrel, and US West Texas Intermediate (WTI) rose by 0.49% to $65.24 per barrel.
Both oil prices had also increased by nearly 1% on Wednesday, recovering from earlier losses earlier in the week.
According to the US Energy Information Administration (EIA), oil and fuel stockpiles in the US dropped by 5.8 million barrels in the week ending June 20. This happened because refineries were more active and demand for oil increased.
This drop was much bigger than the expected decrease of 797,000 barrels from a Reuters survey.
Gasoline stockpiles also fell by 2.1 million barrels. Demand was strong, with gasoline use reaching the highest level since December 2021. Experts had expected an increase in supply instead.
Now, markets are focusing on oil production from OPEC+, a group of major oil-producing countries.
Igor Sechin, head of Russia’s biggest oil company Rosneft, said OPEC+ might increase production earlier than originally planned—possibly a year ahead of schedule.
Tensions in the Middle East
Investors are feeling uneasy and want more information about the ceasefire between Israel and Iran, said economist Yuki Takashima from Nomura Securities.
On Wednesday, US President Donald Trump welcomed the quick end to the Iran-Israel conflict. He said the US may push Iran to stop its nuclear program during upcoming talks.
Trump also said that the US is still putting pressure on Iran by limiting its oil sales. But he hinted that the US might ease some restrictions to help Iran rebuild.
What’s Next?
If the ceasefire continues, experts believe Brent crude oil could stay between $60 and $75 per barrel.
But if the ceasefire is broken, tensions could rise again, which might push oil prices up.
Published: 27th June 2025
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