Oil prices steadied on Wednesday amid concerns about crude and fuel supplies following Ukrainian attacks on Russian refineries and potential escalations in the Israel-Hamas conflict.
Brent crude futures for June rose slightly to $88.98 per barrel, while U.S. West Texas Intermediate crude futures for May dipped slightly to $85.11 a barrel. Both Brent and WTI had climbed 1.7% in the previous session to reach their highest levels since October.
The surge in prices followed a Ukrainian drone attack on a Russian refinery, which threatened to further reduce the country’s processing capacity and limit output of gasoline and diesel fuel.
Russia, as one of the top three global oil producers and exporters of oil products, has raised concerns among investors about potential supply disruptions.
Additionally, investors are worried about potential Iranian retaliation against Israel, which could lead to disruptions in the key Middle East producing region. Iran, the third-largest producer in OPEC, has vowed revenge for an attack on Monday that killed high-ranking military personnel and provides support to Hamas militia fighting Israel in Gaza. Geopolitical tensions continue to cast uncertainty on potential supply disruptions, according to market analysts.
