Oil prices rose for the second consecutive day after US-Iran tensions resurfaced. The trigger: the US reportedly shot down an Iranian drone near an American aircraft carrier in the Arabian Sea an event that immediately put the market on alert.

The West Texas Intermediate contract moved closer to $64 per barrel, after surging 1.7% on Tuesday. Meanwhile, Brent Crude closed above $67, indicating market sentiment is shifting toward a risk-on scenario.

Despite the initial "shock" to the market, the tensions have not yet escalated into a major escalation. Donald Trump emphasized that diplomacy is still ongoing, and the White House through spokeswoman Karoline Leavitt confirmed that US - Iran talks are still scheduled for Friday.

From a fundamental perspective, the market also received another boost: US crude oil inventories fell sharply. The American Petroleum Institute reported that US oil stocks fell by 11.1 million barrels last week if confirmed by official data, this could be the largest decline since June.

Concerns about conflict in the Middle East a region that accounts for about a third of the world's oil supply have boosted prices since last month, even as there are signs of a global oversupply. Oil has also been dragged down by commodity volatility, which briefly pressured gold and silver, before both rebounded in Tuesday's session.

Early in Singapore, WTI for March delivery rose 0.9% to $63.80 per barrel (7:22 a.m.). Brent for April settlement closed up 1.6% at $67.33 per barrel and the market is now waiting to see if this is just a "momentary shock," or the beginning of a new chapter? (asd)[sma]

Source : Newsmaker.id