Oil prices saw a modest increase in early trading on Tuesday. A barrel (159 liters) of North Sea Brent crude for June delivery was priced at $87.36 in the morning, marking a rise of 36 cents from the previous day. Meanwhile, the price for a barrel of West Texas Intermediate (WTI) from the US climbed by 29 cents to $82.85.
Despite recent events in the Middle East, oil prices have remained relatively unaffected. While prices are significantly higher than at the beginning of the year, the recent heightened tensions between Israel and Iran have only sporadically influenced the market with increased risk premiums. A substantial portion of the global oil supply originates from the Middle East.
Lately, crude oil prices have even shown a tendency to decline. A contributing factor is the strong US dollar, buoyed by a solid American economy. Additionally, expectations that the US Federal Reserve (Fed) might not ease its tight monetary policy anytime soon due to persistent inflation in the USA are also playing a role. A strong dollar generally leads to lower oil demand due to exchange rate effects.