Oil rises as geopolitical tensions rise

Oil extends gains as geopolitical risks rise ahead of OPEC+ meeting. Oil extended gains as another attack on a ship in the Red Sea added to rising geopolitical tensions in the Middle East ahead of the OPEC+ meeting. Brent futures rose above $84 a barrel after closing 1.4% higher on Tuesday, while U.S. crude traded near $80. Oil has been lifted this year by tensions in the Middle East and production cuts by the Organization of the Petroleum Exporting Countries and its allies, but prices have softened since early April amid ample supplies outside the group and weak demand in Asia. OPEC+ is scheduled to meet online on Sunday and is expected to lift restrictions by the second half of 2024. “Geopolitical tensions continue to overshadow the market, but I think the upside is limited until we see supply losses. We need to see confirmation that the full rollover of the cuts is in place for the market to move significantly higher,” said Warren Patterson, head of commodities strategy at ING Groep NV in Singapore.