Oil prices extended gains today, June 2, amid renewed tensions in the Middle East that increased the geopolitical risk premium on prices, amid fears of depleting global inventories.
Tensions resurfaced in the Middle East, with the US military announcing that Iranian missile attacks on Bahrain and regional targets were either thwarted or failed, amid weak diplomatic progress between Washington and Tehran, Reuters reported.
“The stalling in the US-Iran negotiations and IEA warnings of critical global low stock levels are adding upward layers in risk premium in benchmark prices,” Emril Jamil, a Senior Analyst for Oil at LSEG, told Reuters.
Brent, WTI Futures Prices
Crude
Price ($/bbl)
Change ($)
Change
Brent (August delivery)
98.56
2.56
2.67%
US WTI (July delivery)
96.43
2.67
2.85%
Data from the American Petroleum Institute showed a decline in US crude inventories. Markets await official data from the Energy Information Administration later today, amid expectations of a 2.9 million barrel drop in inventories.
Oil prices extended gains today, June 2, amid renewed tensions in the Middle East that increased the geopolitical risk premium on prices, amid fears of depleting global inventories.
Tensions resurfaced in the Middle East, with the US military announcing that Iranian missile attacks on Bahrain and regional targets were either thwarted or failed, amid weak diplomatic progress between Washington and Tehran, Reuters reported.
“The stalling in the US-Iran negotiations and IEA warnings of critical global low stock levels are adding upward layers in risk premium in benchmark prices,” Emril Jamil, a Senior Analyst for Oil at LSEG, told Reuters.
Brent, WTI Futures Prices
Crude
Price ($/bbl)
Change ($)
Change
Brent (August delivery)
98.56
2.56
2.67%
US WTI (July delivery)
96.43
2.67
2.85%
Data from the American Petroleum Institute showed a decline in US crude inventories. Markets await official data from the Energy Information Administration later today, amid expectations of a 2.9 million barrel drop in inventories.
