Oil prices moved higher overnight, with both major benchmarks extending recent gains as markets respond to shifting global signals.
West Texas Intermediate (WTI) crude is up about 2% to US$93.19 per barrel. Brent crude has climbed roughly 3% to US$98.01 per barrel. Both are now trading near the upper end of their recent ranges.
The move adds to a strong run over the past year. WTI is up roughly 45% over 12 months, while Brent has gained 44% over the same period. Prices have also lifted from levels closer to US$60 per barrel late last year.
Here's what the market is focused on.
Image source: Getty Images
Geopolitical risk remains front of mind
Recent price action has been closely tied to developments in the Middle East.
Ongoing tensions in the region have kept attention on key oil transit routes, including the Strait of Hormuz. Reports indicate markets are reacting to changing expectations around potential disruptions.
The Strait of Hormuz remains one of the world's most important oil shipping routes, handling a large share of global exports each day.
At the same time, news headlines around ceasefire discussions and negotiations continue to shift sentiment. Prices have moved in both directions as updates emerge, showing how quickly expectations are being repriced.
Inventory data adds another layer
Alongside geopolitical developments, recent supply data has also supported prices.
Latest figures show US crude inventories fell by 9.13 million barrels last week. That contrasts with expectations for a modest build of around 154,000 barrels.
The drawdown follows a period of inventory increases and points to a tighter near-term supply outlook. Moves in oil have tracked closely with these updates, adding to upward pressure in recent sessions.
Prices remain elevated despite mixed short-term moves
While prices have moved higher overnight, recent performance has been mixed.
WTI is down 3% over the past month, showing how quickly sentiment has shifted. Even so, both WTI and Brent remain well above levels seen earlier this year.
Recent trading data also shows that WTI briefly moved above US$95 per barrel during the latest rally before easing slightly, while Brent has held closer to US$98.
What the latest move reflects
There have been no confirmed large-scale supply disruptions in the latest updates.
Even so, prices remain elevated as markets continue to factor in potential risks and react to incoming data.
That keeps oil highly sensitive to new information, with pricing adjusting quickly as expectations change.
Prices suggest traders are still accounting for disruption risk, even though supply has not been materially affected.
