Crude Oil Prices Hit Three-Week High Over Supply Fears

Crude oil prices rose to a three-week high amid mounting concerns over supply disruptions and increasing demand.

Recent price increases have been driven by fears of limited supply from Iran and Russia.

However, technical analysts warn that oil markets may be overbought, Tina Teng reported for Euronews.

Crude oil prices extended their gains during the Asian session on Wednesday, with Brent futures up 0.35% to $77.32 per barrel and WTI futures rising 0.50% to $74.61 per barrel at 4:35 AM CET. Both benchmarks reached their highest levels since October 14.

This follows a nearly 1% gain in both benchmarks on Tuesday, reflecting how supply concerns and rising winter energy demand have overshadowed broader economic uncertainties.

Crude prices are on track for a third consecutive weekly gain after hitting near three-year lows in early December.

Recent price increases have been driven by fears of limited supply from Iran and Russia. The Biden administration plans to impose additional sanctions on Russian oil exports before Donald Trump’s inauguration on January 20.

The outgoing U.S. administration aims to target tankers transporting Russian crude priced above the $60-per-barrel cap imposed by the U.S. and its European allies.

Meanwhile, Trump is expected to enforce stricter restrictions on Iranian oil exports upon taking office, potentially disrupting the global supply by up to one million barrels per day—approximately 1% of the total.