Middle East Supply Concerns Persist, Oil Prices Continue to Rise
Middle East Supply Concerns Persist, Oil Prices Continue to Rise
Jakarta, CNBC Indonesia - Global oil prices moved slightly higher in trading on Thursday morning (26/2/2026), as market participants weighed the increase in US crude oil inventories against concerns about supply from the Middle East.
Refinitiv data showed Brent prices at US$71.1 per barrel at 09.20 WIB, while West Texas Intermediate (WTI) was at US$65.63 per barrel.
The price movement indicates a tendency for stability in recent days. Brent rose slightly from US$70.85 on 25 February to US$71.1 per barrel, while WTI moved relatively flat in the range of US$65-66 per barrel. In the last two weeks, Brent had touched US$67.42 per barrel on 17 February before rising again to nearly US$71 per barrel.
The price increase was held back by the increase in US crude oil stocks. Inventories were reported to have increased significantly above market expectations in the last week, driven by increased imports and lower refinery operating rates. This data usually puts downward pressure on prices as it indicates a looser supply in the US domestic market.
However, the impact of the increase in stocks was limited because market participants are still focused on global supply risks. Tensions between the United States and Iran remain a major concern as potential conflict could disrupt oil flows from the Middle East.
Iran is one of the important producers in the group of oil-exporting countries. Disruptions to production from the country could potentially affect the global market balance, especially if the conflict spreads to energy distribution routes in the Gulf region.
On the other hand, major producers are said to be preparing anticipatory measures. Saudi Arabia is reportedly preparing to increase oil production and exports if there are supply disruptions from Iran. This policy is intended to maintain global supply stability if conflict escalates.
The group of producers is also expected to still be considering a gradual increase in production in April. Increasing production is one of the options to anticipate increased energy demand ahead of the summer in the northern hemisphere.
The relatively narrow price movement indicates that the market is still waiting for certainty regarding policy direction and geopolitical developments. As long as supply risks do not subside, oil prices are likely to remain in the current range with continued high volatility.
CNBC Indonesia
(emb/emb)