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Oil Prices Continue to Rise Amid Geopolitical Tensions and Supply Concerns
Oil prices extended their gains on Tuesday, building on the sharp rise from the previous session, as geopolitical tensions and uncertainty surrounding nuclear negotiations fueled fears of potential supply disruptions in global energy markets.
As of 3:45 PM Saudi time, Brent crude futures were up 1.2% at $65.41 per barrel, while West Texas Intermediate (WTI) crude futures rose 1.4% to $63.40 per barrel—reflecting growing anxiety across the global oil market.
The market had already received a boost after the oil producers' alliance (OPEC+) confirmed it would maintain its July output increase at 411,000 barrels per day, a level below what some analysts had feared, supporting crude oil prices.
Nuclear Talks in Doubt as Sanctions Remain in Place
Ongoing nuclear negotiations between key international players have reached an impasse, casting doubt on the possibility of easing sanctions on certain oil-exporting countries. If talks fail, these supply constraints are expected to persist, keeping global oil supply tight and prices elevated.
Escalating Geopolitical Tensions Fuel Market Volatility
Geopolitical instability in several regions continues to weigh on market sentiment. Discussions are underway to impose further sanctions targeting major exporters and importers of energy, raising the risk of additional supply tightening in the near future.
Wildfires Disrupt Oil Production in North America
On another front, natural disasters are also affecting oil output. Recent wildfires in a key oil-producing region in North America have forced a production shutdown of approximately 350,000 barrels per day—roughly 7% of the country’s total oil output—according to analysts.
Market Outlook
The current landscape suggests that uncertainty in global energy markets is likely to persist due to political instability, stalled international agreements, and environmental disruptions. Analysts expect both Brent and WTI crude prices to remain elevated as long as these pressures continue.
