Oil Prices Climb as WTI Exceeds $75 for the First Time Since October 2024

In a significant market movement, West Texas Intermediate (WTI) crude oil futures soared above the $75 threshold on Wednesday, marking the first occasion since early October 2024. This surge is attributed to growing concerns over oil supply constraints and escalating geopolitical tensions in Eastern Europe.

Recent data from the American Petroleum Institute (API) highlighted a substantial decrease in U.S. crude oil inventories, with a drop of 4.02 million barrels. Concurrently, reports surfaced of Ukraine targeting a Russian oil depot, believed to support a military airfield, further intensifying the conflict in the region. These developments have sparked fears of potential disruptions in oil supply, contributing to the price hike.

Amidst these tensions, speculation grows over the United States' possible imposition of additional sanctions on Russia, aimed at curtailing its energy revenues. Such measures could exacerbate the already volatile oil market.

As of 3:34 am ET, WTI for February deliveries experienced a 0.90% increase, reaching $75.12 per barrel. Similarly, Brent crude for March settlements saw a 0.96% rise, trading at $77.82 a barrel shortly thereafter.