Geopolitical Tensions and OPEC+ Decisions Drive Oil Price Volatility
Iran's decision to cut ties with UN nuclear inspectors triggered a 2% surge in oil prices, pushing Brent crude above $67 per barrel and West Texas Intermediate (WTI) NEAR $66. The move comes just days before a critical OPEC+ meeting, reigniting market volatility after a brief lull from the Iran-Israel ceasefire.
Supply constraints are tightening, with Cushing storage hub inventories dropping by 1.4 million barrels—the sharpest decline since January. If confirmed by official data, stockpiles WOULD hit their lowest seasonal level since 2005, amplifying pressure on an already tense market.
All eyes now turn to Sunday's VIRTUAL OPEC+ meeting, where another production hike is widely anticipated. Geopolitical risks, dwindling US stockpiles, and macroeconomic signals converge to create a powder keg scenario for energy markets.