WTI rises toward $82.00 due to supply threats over escalated Middle East tensions
- WTI continues its winning streak due to supply concerns amid Middle-East tensions and weather-related disruptions.
- Escalated tensions between Israel and Lebanon’s Hezbollah could potentially involve Iran, a major Oil exporter.
- Over the past week, Ecuador's production has decreased by 100,000 barrels per day due to heavy rains.
West Texas Intermediate (WTI) crude Oil price extends gains for the third successive session, trading near $81.80 during the Asian session on Friday. Crude Oil prices are set to advance for the third straight week due to supply threats, which could be attributed to an escalating conflict in the Middle East.
Tensions between Israel and Lebanon’s Hezbollah have escalated as Hezbollah has intensified rocket and drone attacks in northern Israel in recent weeks. A broader conflict in the Middle East could potentially involve countries like Iran, a major Oil exporter in the region.
On Thursday, the French foreign ministry expressed concern over the situation in Lebanon. Earlier, Turkey declared its solidarity with Lebanon and called for support from regional governments, according to Reuters.
Reuters also cited FGE Energy on Friday, stating that Oil supplies have been pressured by weather-related disruptions, which could worsen in the coming weeks. Heavy rains have caused Ecuador's production to decline by 100,000 barrels a day over the past week.
The US National Hurricane Center is currently tracking at least one weather system that has the potential to develop into a cyclone and head toward the US Gulf Coast. This could negatively impact a significant portion of the country's energy and export infrastructure.
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