Global oil prices hovered near seven-month highs as rising geopolitical tensions between the United States and Iran supported the market, even as growing American crude inventories raised concerns about potential oversupply.
Brent and WTI Hold Strong
Brent Crude futures were trading around 71 dollars per barrel in London, up roughly 0.5 percent on the day and close to their highest levels since late July.
Meanwhile, West Texas Intermediate (WTI) futures were near 65.8 dollars per barrel, gaining about 0.3 percent and holding close to levels last seen in early August.
Both key global benchmarks have climbed nearly eight percent over the past month as traders priced in a higher geopolitical risk premium linked to tensions in West Asia. Markets are closely monitoring the possibility of confrontation between Washington and Tehran, which could disrupt crude exports from the region.
Iran’s Role and Supply Concerns
Iran remains the third-largest producer within Organization of the Petroleum Exporting Countries (OPEC), making any potential disruption significant for global supply chains.
However, fresh data from the American Petroleum Institute (API) showed that U.S. crude inventories rose by approximately 11.4 million barrels in the week ending February 20. The sharp build in stockpiles has raised concerns that global supply may still outpace demand.
Traders are now awaiting official inventory data from the U.S. Energy Information Administration (EIA), which could provide further direction on short-term price trends.
With geopolitical risks mounting and supply-demand dynamics shifting, oil markets remain highly sensitive to both diplomatic developments and inventory data releases.
