For the first time since October, oil prices end above $90/bbl

Oil prices consolidated their gains on Thursday, rising more than a dollar at settlement, as the impact of geopolitical tensions and production cuts overshadowed expectations for a reduction in US interest rates.

According to Reuters, Brent crude futures for June delivery rose $1.30, or 1.5%, to $90.65 per barrel upon settlement. US West Texas Intermediate crude futures for May delivery also rose $1.16, or 1.4%, to $86.59 per barrel.

Both crude oils reached their highest levels since October at settlement on Thursday, supported by escalating geopolitical tensions and potential supply risks.

Oil prices rose on Thursday following reports that Israeli diplomatic mission headquarters across the United States were placed on maximum alert due to increasing threats of an Iranian attack on Israeli diplomats.

On Thursday, the United States imposed new Iran-linked anti-terrorism sanctions on Oceanlink Maritime DMCC and its ships due to its role in shipping goods on behalf of the Iranian military.

The Treasury Department stated that Washington is using financial sanctions to isolate Iran and weaken its ability to finance its proxies and support the Russian war in Ukraine.

Prices also received support after US Secretary of State Anthony Blinken said that Ukraine would eventually join NATO, as support for Kiev remains “firm” among NATO member states.

The recent oil gains come after Ukraine launched attacks on Russian refineries that cut off fuel supplies and following reports that Mexico’s national energy company, Pemex, has asked its trading unit to cancel up to 436,000 barrels per day of crude exports this month as it prepares to process domestic oil. In the Dos Bocas refinery.

Ministers of the bloc known as OPEC+, which includes OPEC and allies including Russia, during a meeting held on Wednesday kept the oil production policy unchanged and urged some countries to strengthen commitment to production cuts.

On Wednesday, Federal Reserve Chairman Jerome Powell also expressed caution about future interest rate cuts after data published recently showed job growth and inflation higher than expected.