The price of oil reached its highest level in the last 2 months

Oil prices surpassed two-month highs after breaking out of their most recent trading range on heightened tensions in the West Asia and concerns about a quick start to the Atlantic hurricane season.

According to Al-Sharq report, Brent crude oil traded near $87 per barrel after rising 1.9%, while West Texas Intermediate crude crossed $83.

It was in the midst of this that the Zionist army announced that 18 soldiers were injured in a drone attack carried out by Hezbollah, and one of them is in critical condition. This was the reason why the oil market was inflamed due to the fear of starting a conflict between the regime and Hezbollah.

On the other hand, Hurricane Brill has reached the Caribbean island of Carriacou as a Category 4 storm, raising concerns that such an early event could herald a dangerous hurricane season that is still months away from its usual peak. /p>

Oil stabilizes its gains of last month thanks to maintaining the unity among OPEC+ members. Traders are also likely to keep a close eye on gasoline demand ahead of the US Independence Day holiday on Thursday, with some forecasting concerns about China, the biggest crude importer, as it could put a cap on price gains.

Increase in buying and selling in crude oil presale contracts has increased implied volatility. Money managers returned to the market of oil and refined products, including diesel, and the time difference between oil contracts with different maturities is still in “post-order” mode, which indicates an upward trend in prices.

Political factors such as the war in Gaza and the war in Ukraine, due to the lack of a clear horizon for their end, as well as concerns about its expansion to other regions, are still among the potential factors that can seriously affect the market. 

Translator: Mina Azimi