Brent crude surpasses $70 as geopolitical risk premium rise

Oil drilling rigs

Oil prices rose during trading today, Jan. 29, as geopolitical risk premiums resurfaced amid concerns that the US might launch a military attack on Iran. In addition, prices were also affected by deeper-than-expected drop in US crude oil inventories last week.

Brent crude was trading up 2.4% at $70.03 a barrel, at 12:38 pm Makkah time. West Texas Intermediate (WTI) rose 2.55% to $64.83 a barrel.

Analysts at Citi said that the possibility of an attack on Iran has raised the geopolitical risk premium on oil prices by between $3 and $4 per barrel, and added that any further geopolitical escalation could push Brent crude prices to $72 per barrel, Reuters reported.