Oil prices rose sharply on Wednesday as regional supply disruptions impacted global markets. Brent crude climbed $1.11, or 1.4%, to $82.53 per barrel, after reaching its highest level since January 2025 on Tuesday. US West Texas Intermediate crude gained 79 cents, or 1.1%, to $75.37, also near its highest since June.
Production cuts in key oil-producing countries contributed to the price increase. Iraq reduced output by nearly 1.5 million barrels a day, roughly half of its total production, due to storage limits and export challenges. Oil and LNG transport via the Strait of Hormuz, which handles about one-fifth of global supply, encountered delays.
To stabilize the market, alternative measures are being explored. India and Indonesia are seeking other energy supplies, while some Chinese refineries have adjusted maintenance schedules. Saudi oil company Aramco is rerouting some exports through the Red Sea to avoid congestion in key shipping lanes.
In the United States, crude stocks rose by 5.6 million barrels last week, well above analysts’ expectations of 2.3 million barrels, according to the American Petroleum Institute. Official government figures are expected later on Wednesday.
