Oil Prices Steady Above $108 Amid Middle East Tensions
Oil prices have stabilized above $108 per barrel amid ongoing tensions in the Middle East and concerns over global supply disruptions.
Data from Mettis Global shows that Brent crude futures are up by 0.74% at $108.04, while West Texas Intermediate (WTI) crude futures have increased by $1.73 or 1.68% to $104.71 per barrel as of [10:25 am] PST.
The sharp increase in U.S. crude inventories last week, reported by the American Petroleum Institute (API), has contributed to the decline in oil prices. Crude inventories climbed by 7.1 million barrels, exceeding analysts' expectations for a decline of around 1.6 million barrels.
Market attention remains focused on developments in the Middle East, particularly supply risks following Iran's attack on Saudi Arabia's key East-West pipeline, which was shut down over the weekend. U.S. Energy Secretary Chris Wright said that the pipeline closure would be a brief disruption lasting only a few days, but Andy Lipow, president of Lipow Oil Associates, suggested repairs could take months.
The financial implications of the ongoing conflict are also being closely watched, with the Congressional Budget Office estimating the U.S. war with Iran has cost the Pentagon an estimated $38.1 billion through August 1 and potentially requiring an additional $2 to $3 billion for each further month of fighting.