"Tensions support prices": oil jumped 2% to breach $70 a barrel
Photo: lusia83 / Shutterstock
The price of Brent crude oil on February 11 increased by almost 2% at an intraday high and crossed the $70.7 per barrel mark. The last time oil prices were at this level was at the end of January. WTI, meanwhile, jumped more than 2% to $65.8.
"Tensions in the Middle East continue to support [oil] prices, although there have been no supply disruptions so far," said UBS oil market analyst Giovanni Staunovo (quoted by CNBC).
Deutsche Bank strategist Henry Allen attributes the rise in oil prices on February 11 to reports that the U.S. administration is considering seizing additional tankers carrying Iranian oil and thus participating in the transportation of raw materials to circumvent sanctions. The Wall Street Journal reported this on Wednesday, citing unnamed U.S. officials. The implementation of these plans could potentially further reduce oil exports from Iran - one of the main sources of supply on the world market, Barron's notes.
In addition, even as Washington and Tehran prepare to resume talks on a "nuclear deal" aimed at preventing a new conflict, US President Donald Trump said in an interview with Axios on February 10 that a second US aircraft carrier may be sent to the Middle East, adding to uncertainty in the markets, CNBC notes. However, PVM Oil Associates analyst Tamas Varga believes that "while [Trump's] rhetoric remains bellicose at times, there are no signs of escalation <...>," the channel quoted him as saying.
Among other factors of growth in oil prices CNBC calls a slight weakening of the dollar, reduction of oil production in Russia (a decrease of about 0.6% in January compared to December), as well as virtually unchanged compared to last month's forecast on supply and demand in the oil market from OPEC. In it, the member countries reported that global demand for oil produced by the group would decline by 400,000 bpd in the second quarter of 2026 compared to the first quarter.
This article was AI-translated and verified by a human editor
