Oil Prices Rise Amid Global Tensions and Economic Stimulus

Oil is poised for its most significant weekly increase since October, driven by a combination of geopolitical conflicts and economic stimulus prospects. Despite a slight dip, Brent crude is trading near $82 a barrel, having broken out of its previous range and surpassed its key 200-day moving average for the first time since November. Contributing factors include heightened Middle East tensions, particularly US strikes on Iran-backed forces in Yemen and drone attacks on Russian refineries. Additionally, a larger-than-expected draw in US oil stockpiles and China’s government stimulus measures to bolster its economy have supported the price increase. However, the potential for increased output from non-OPEC countries and slowing demand in major markets like India is making traders cautious. This complex mix of geopolitical risks and economic policies is currently the primary support for the ongoing surge in oil prices.