Oil Prices Climb on Geopolitical Tensions Amid Oversupply Concerns

Global oil prices remained near seven-month highs on February 25 as rising tensions between the United States and Iran supported the market. The Brent crude futures price hovered around $71 per barrel in London, up about half a percent from the previous day.

The West Texas Intermediate (WTI) futures price was near $65.8 per barrel, gaining about 0.3 percent and holding close to levels last seen in early August. The global benchmarks have risen nearly eight percent over the past month as traders factored in a higher risk premium linked to tensions in West Asia.

The possibility of confrontation between Washington and Tehran is being closely watched by markets, which could disrupt crude supplies from the region. Iran is the third-largest oil producer in OPEC, but growing American crude inventories are also causing concern about oversupply. US crude stockpiles rose by 11.4 million barrels in the week to February 20.