Oil prices increased on Thursday due to heightened geopolitical tensions between Russia and Ukraine, despite a significant rise in U.S. crude inventories. Key movements:

Brent crude rose 96 cents (1.3%) to $73.77. WTI crude increased 99 cents (1.4%) to $69.74. Earlier, prices had gained more than $1 in intraday trading.

Geopolitical Tensions Key developments driving oil prices:

Ukraine’s Missile Strikes: Deployment of British and U.S. cruise missiles against Russia. Russia’s Retaliation: Launching an intercontinental ballistic missile at Ukraine, marking its first use in the conflict. The ongoing conflict reached its 1,000th day this week, with risks of targeting Russian energy infrastructure raising concerns. Analysts suggest uncertainty in Moscow’s response as a significant factor impacting the market.

OPEC+ Outlook Discussion within OPEC+ (responsible for nearly 50% of global oil production) indicates potential delays in planned output increases:

Initial plans to reverse production cuts between late 2024 and 2025 may be deferred. The IEA projects global supply will exceed demand in 2025, even with current OPEC+ cuts. Inventory Data Despite geopolitical tensions, U.S. inventory data weighed on markets:

Crude inventories rose by 545,000 barrels to 430.3 million barrels, surpassing expectations. Gasoline stocks increased more than forecast. Distillate stockpiles declined beyond anticipated levels. Conclusion Escalating conflict and potential supply disruptions overshadowed bearish inventory data and weak demand outlooks. Ongoing Ukraine-Russia tensions remain a critical driver of volatility in global oil markets.