However, the situation remains volatile, and oil prices will likely remain supported and dominated by upside risk,” he wrote.West Texas Intermediate crude for May deliveryįell $1.70, or 2.1%, to settle at $79.16 a barrel on the New York Mercantile Exchange, ahead of the contract’s expiration at Thursday’s settlement. “Recent diplomatic developments helped ease tensions, bringing some hope of a de-escalation in the war. “Supply-side worries drove the recent rally in crude prices, with many fearing that a protracted war, which could spill over across the Middle East, would lead to a reduction of supply in the global oil market,” Ricardo Evangelista, senior analyst at ActivTrades, said in a note. A conflict that involves Iran would likely see renewed scrutiny of that country’s crude-oil exports, which experts said have likely climbed back to around 2 million barrels a day after being decimated by the re-imposition of sanctions by the Trump administration in 2018.Ī worst-case scenario - Iran closing the Strait of Hormuz, a crucial oil-transportation chokepoint - could have an even larger effect on crude prices, analysts have warned. A summit between Palestinian, U.S., Jordanian and Egyptian leaders was canceled shortly before Biden departed for Israel.Īnalysts and traders said they expect price action to remain volatile, with fears of a potential spillover that could involve Iran unlikely to be fully dispelled. President Joe Biden visited the Middle East. Last week, a missile strike on a Gaza hospital killed hundreds of Palestinians just before U.S. The de-escalation efforts follow a strong week for oil, with both Brent and WTI up more than 1%. See: Israel strikes Gaza, Syria and West Bank as war against Hamas threatens to ignite other fronts On Saturday, 20 trucks entered Gaza in the first shipment of aid into the territory, while Israel allowed a second convoy of 15 trucks into Gaza on Sunday. Israel has yet to mount a widely anticipated ground incursion into the enclave, as the Biden administration has advised the country to delay the invasion to allow for more time for hostage negotiations and humanitarian aid. Israel intensified an aerial bombing campaign of the Gaza Strip, where the death toll has topped more than 4,600 over the past two weeks, according to the Wall Street Journal. 7, when the Palestinian militant group Hamas launched surprise cross-border raids on Israel from Gaza, pushing the region to the precipice of a dangerous abyss. Rose 2.7 cents, or 0.9%, to end at $2.926 per million British thermal units, snapping an eight-session losing streak, according to Dow Jones Market Data. Lost 4.5 cents, or 1.9%, to finish at $2.3285 a gallon, snapping a six-session winning streak, while November heating oilĭeclined by 6.1 cents, or 1.9% to settle at $3.0955 per gallon. The global benchmark, was off $2.33, or 2.5%, to end at $89.83 a barrel on ICE Futures Europe, also booking its biggest daily percentage drop since Oct. benchmark, according to Dow Jones Market Data. It was the largest one-day percentage decline since Oct. West Texas Intermediate crude for December deliveryįell $2.59, or 2.9%, to settle at $85.49 a barrel on the New York Mercantile Exchange. Oil futures settled lower on Monday, logging their biggest daily decline since early October as traders monitored diplomatic efforts aimed at ensuring the Israel-Hamas war doesn’t spiral into a wider regional conflict.
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