Oil Prices Soar Amid Escalating Middle East Tensions

Oil prices are surging amid escalating tensions in the Middle East and steady production levels from OPEC+. The price of oil has jumped almost 10% over the past week, with WTI breaking out of a symmetrical triangle pattern but struggling to break above $93.

The recent tanker strikes between the U.S. and Iran have heightened fears of a prolonged disruption to crude supply, lifting the risk premium. Meanwhile, OPEC+ has kept October production levels unchanged, keeping oil output steady after six months of increases.

Crude oil inventories fell by 4.5 million barrels last week, the first draw in five weeks and larger than expectations. Refineries are running at 98% capacity, a level not seen since 2018, providing a floor for oil prices.