Oil prices rise to the highest level in 6 consecutive sessions What is the reason

Oil prices rose by about 2% during trading on Wednesday evening, continuing their gains for the second consecutive session, amid renewed military actions in the Middle East and stalled negotiations between Iran and the United States, along with indications of tightening global oil supply.

The renewed tensions in the Middle East contributed to the upward momentum of crude oil prices as the chances of reaching an agreement to end the war between the United States and Iran weakened, after Iran launched ballistic missiles towards Kuwait and Bahrain, resulting in one death and dozens injured, according to Kuwaiti authorities and official media, while U.S. forces carried out strikes on Iran's Qeshm Island.

In contrast, the Iranian news agency "Tasnim" reported that indirect messaging between the two parties has temporarily halted until Iran's conditions regarding the cessation of military operations in Lebanon are met, while reports indicated that ongoing talks in Washington have made no significant progress in the current round.

On another front, oil prices received additional support from warnings from the International Energy Agency about the possibility of global oil inventories declining to critical levels during the summer if the current withdrawal rate from inventories continues alongside peak seasonal demand.

In this context, data from the U.S. Energy Information Administration showed a decrease in crude oil inventories by 8 million barrels for the week ending May 29, reaching 433.7 million barrels, a decline that far exceeds market expectations which indicated a decline of about 4 million barrels only, reflecting strong demand for exports and refining within the United States.

Crude Oil Price Movements

Regarding trading on Wednesday evening, the price of Brent crude oil futures - for August delivery - rose by approximately 2.06% to reach $97.98 per barrel, alongside an increase in prices for West Texas Intermediate crude oil futures - for July delivery - of about 2.44% to trade near the level of $96.05 per barrel.