Oil prices rise following conflicts in the Middle East

A barrel of Brent crude oil is traded at $68.07 in international markets.

The price of a barrel of Brent crude, which rose to $68.47 yesterday, closed the day at $68.03.

The price of a barrel of Brent crude rose 0.05 percent to $68.07 as of 9:00 a.m. today compared to the closing price. At the same time, a barrel of West Texas Intermediate (WTI) crude was trading at $65.46.

DEVELOPMENTS IN THE MIDDLE EAST

The rise in oil prices was driven by increasing geopolitical risks in the Middle East and strong demand in the United States.

The Iraqi Kurdish Regional Government's Counter-Terrorism Unit announced yesterday that three separate oil fields in the Iraqi city of Duhok were attacked by a bomb-laden unmanned aerial vehicle (UAV) this morning. Following the initial attacks, the Hunt oil field was also targeted later that day. It was reported that there were no casualties or serious material damage.

The US State Department issued a condemnation message, stating that the attacks posed a serious threat to the Iraqi economy and energy companies.

Another development that increased geopolitical risks was Israel's airstrikes on Syria. The Israeli army targeted the presidential compound and the General Staff headquarters in Damascus.

Israeli Army Radio reported that the army is preparing for several days of fighting in Syria. Israeli warplanes reportedly targeted the 107th Brigade in Syria's Latakia province today.

Developments in the region fueled concerns about supply disruptions in the Middle East, which holds a significant portion of global oil reserves, and supported price movements upwards.

Meanwhile, signs of strong demand in the US, the world's largest oil consumer, also pushed prices higher. The US Energy Information Administration (EIA) reported that commercial crude oil inventories decreased by 3.9 million barrels last week to 422.2 million barrels. Daily crude oil production fell by 10,000 barrels to 13.37 million barrels.

While the decline in inventories indicates strong domestic demand, the decline in production has also raised supply concerns.

Technically, $72.62 is seen as resistance and $64.30 as support for Brent crude oil.