Oil Prices Hit Four-Month High Amid Supply Concerns and Strong Demand

Tight global oil market conditions, driven by geopolitical tensions and robust demand, fuel investor anticipation of further increases.

Oil prices have surged to a four-month high, driven by Ukrainian drone attacks on Russian refineries, OPEC+ production cuts, and strong demand indicators from the US and China.
Brent crude traded near $87 a barrel, while West Texas Intermediate was below $83, signaling a tight global oil market.
The International Energy Agency forecasts a supply deficit for the year, as global demand outpaces production, partly due to OPEC+ curbs and shipping disruptions in the Red Sea.
Investors and analysts anticipate further price increases, with the Energy Select Sector SPDR ETF surging more than 7% in the past month.
Geopolitical tensions and the outcome of the upcoming Federal Reserve meeting are closely watched for their potential impact on oil prices.