Crude oil prices surged in early June 2025, driven by escalating geopolitical tensions following Israeli airstrikes and Iranian retaliation. Brent futures rose almost 6% to $73.58/barrel, despite Iranian oil production remaining unaffected. This volatility is set to continue, influenced by potential U.S. tariffs and OPEC+ production changes. Meanwhile, China, the world's largest importer, is building crude stockpiles. Its May imports fell, but domestic production slightly rose. China's refining is less than its available supply, enabling it to stock up and potentially reduce future imports as prices climb due to Middle East fears, including Iran's threat to close the Strait of Hormuz.
The crude oil prices rebounded significantly as June xxxx began. Crude oil prices soared massively following Israel’s airstrikes on Iran, a move that jolted global markets amid fears of a broader regional conflict. This attack has caused the stocks to deplete considerably which triggered geopolitical instability and led to a rise in crude oil prices.
Key Takeaways:
-
Crude oil prices recovered due to the rise in geopolitical tension in the Middle East.
-
Iranian oil production was unaffected by attacks.
-
China&#xx;s crude oil imports are increasing following the attacks between Iran and Israel.
As per ChemAnalyst, crude oil prices are expected to remain uncertain in the upcoming weeks. The rapid increase of production quotas by OPEC+ could place downward pressure on oil prices. However, the recent attack between Iran and Israel could escalate geopolitical instability and disruption which could tighten the...
