Oil achieves highest close in 3 weeks as geopolitical tensions escalate

Oil drilling rigs

Oil extended gains today, Feb. 14, supported by bullish demand expectations from the OPEC, coinciding with the United States rejection of a Russian proposal for a ceasefire in Ukraine and amid heightened tensions in the Middle East.

Brent crude for April delivery rose by about 0.95%, or 77 cents, to close at $82.77 per barrel—the highest level since Jan. 26.

WTI crude for March delivery increased by 1.25%, or 95 cents, to $77.87 per barrel—also marking the highest settlement since Jan. 26.

OPEC said in its monthly report that its expectations for the growth of global oil demand for 2024 remain unchanged from last month’s estimates at 2.2 million barrels per day. The group expects the momentum of oil demand to continue in 2025 and grow at a rate of 1.8 million barrels per day.

Meanwhile, inflation in America rose more than expected during January, which renewed fears of delayed interest rate cuts by the Federal Reserve that, in turn, could hinder economic growth and affect the demand for oil.

The American Petroleum Institute's report on oil inventories is expected to be issued later today, and the US Energy Information Administration is scheduled to issue official data on inventories on Feb. 14, amid expectations that crude inventories will rise by 3.3 million barrels.