Khaberni - Oil prices continued to rise on Thursday amid fears of a prolonged disruption of supplies from the Middle East region, as talks aimed at ending the US-Israeli war against Iran reached a deadlock.
Brent crude futures rose to a 4-year high at $124.67 per barrel amid fears of a possible escalation in the war between the United States and Iran.
US crude oil futures rose by more than two dollars to $109.64 per barrel, its highest level since April 7.
Axios reported on Wednesday that US President Donald Trump will be briefed by the commander of US Central Command, Brad Cooper, on new plans for possible military action in Iran.
A White House official said on Wednesday that President Donald Trump had spoken with oil companies about how to mitigate the impact of the US blockade of Iranian ports if it continues for months, raising market fears of a prolonged oil supply disruption.
Tony Sicamore, a market analyst at IG, commented in a memo that "the prospects for an imminent resolution to the Iran conflict or the reopening of the Strait of Hormuz remain slim."
The meeting with oil companies followed the arrival of efforts to resolve the conflict, which has killed thousands and caused what analysts describe as the biggest disruption to energy supplies in the world ever, to a standstill.
Regarding supplies, sources told Reuters that the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies from outside it, is likely to agree on Sunday to a slight increase in oil production quotas by about 188,000 barrels per day.
The meeting comes immediately after the United Arab Emirates' withdrawal from OPEC, which is expected to deal a blow to the oil producers' consortium's ability to control prices. Although the UAE's exit will allow it to increase production after resuming exports, analysts say it is unlikely to affect market fundamentals this year, especially with the closure of the Strait of Hormuz and other production disruptions resulting from the war.
