US oil prices rose by 1.9% to near $72 a barrel, despite being near their lowest levels for the year, due to signs of a tightening market and rising geopolitical tensions. The West Texas Intermediate (WTI) climb came as investors sought refuge in higher-priced commodities amid concerns about oversupply. Russian oil production fell short of its OPEC+ quota last month, easing fears of excess supply.
The US government also announced plans to impose additional tariffs on steel and aluminum, signaling a shift towards protectionism. However, the impact of these measures was tempered by ongoing planned tariffs, which continued to weigh on market sentiment. In the Middle East, tensions escalated after Israel and Hamas accused each other of violating a six-week ceasefire deal, prompting physical traders to seek alternative energy sources.
Soaring natural gas prices in Europe further incentivized the use of oil for power generation, while investors increasingly focused on the potential risks and rewards associated with increased geopolitical tensions.
Source: https://www.bloomberg.com/news/articles/2025-02-09/latest-oil-market-news-and-analysis-for-feb-10