Oil touches prewar levels on rising Middle East supply

Key Facts

In a shift reflecting changing global supply dynamics, oil prices touched prewar levels driven by rising Middle Eastern supply, according to Reuters reports. Analysts say additional crude flows from key regional producers are pushing prices down after months of geopolitical volatility.

The moves come amid mixed global economic signals: recent US data showed the Philadelphia Fed Manufacturing Index improving to 10.3, while Japan's inflation held at 1.5% YoY. In Europe, consumer confidence improved in Germany and the Netherlands, potentially supporting energy demand over the medium term.

Traders are watching price action near two-year lows, with markets awaiting the impact of higher Canadian inflation (3.2% YoY) and ECB President Lagarde's speech, which may offer policy guidance affecting oil demand outlook. OPEC+ decisions remain a key focus for determining whether supply pressures persist.