Oil’s Third‑Day Streak: WTI & Brent Keep Climbing
Crude oil is on a tear, adding 0.6 % on WTI and 0.4 % on Brent for the third straight day—no wonder traders are keeping an eye on those numbers.
Why the Prices Are Rolling Up
It’s basically a “geopolitical fear” rush:
- US officials are doing a quick‑scan of the Middle East, worrying that a flare‑up on the South Lebanon front could turn into a full‑scale regional war.
- If that happens, oil pipelines could be cut up and the world would feel the pinch.
- Russia hints it might back its allies—adding a layer of tension with the U.S.
Meanwhile, the Israeli forces are stubbornly staying the course in Gaza, which makes a diplomatic “pause” unlikely. The The Wall Street Journal says the U.S. administration recognizes the dead‑end, but the stakes stay high.
And the Economic Backdrop
Not much cheering news has come out of the big economies this week:
- U.S. crude inventories rose more than expected, which is usually a pro‑price sign.
- Home‑sales data came in weaker than people hoped, dampening any optimism for a rate cut.
- Even though these figures could have helped oil prices, the U.S. dollar keeps inching up against the other major currencies.
With the Dollar Index hovering near 106‑107, a breakthrough could trigger a sharp correction—another boost for oil.
Bottom Line
Oil is on a roller coaster for now, driven largely by the specter of a Middle‑Eastern flare‑up and a relatively flat economic backdrop. Keep your eyes on the feed—this market is anything but boring.
