Oil prices continue to rise due to tensions in the Middle East - Reuters
Kyiv • UNN
Oil prices jumped due to concerns about supply risks in the Middle East and declining US inventories. Brent rose to $78.39 and WTI to $75.39 per barrel, recovering from the lows of 2024.
On Thursday, August 8, oil prices jumped due to market concerns about supply risks due to escalating tensions in the Middle East, and a sharp decline in US oil inventories contributed to the renewal of multi-month lows. Writes UNN with reference to Reuters.
Details
Brent crude futures rose 6 cents, or 0.1%, to $78.39 per barrel, while US West Texas Intermediate rose 16 cents, or 0.2%, to $75.39.
Both brands have recovered from the 2024 lows they hit earlier this week due to the US recession and falling global stocks.
The likelihood of supply disruptions in the Middle East has caused concern among markets after the assassination of Hamas and Hezbollah leaders last week, which increased the risk of Iranian retaliatory strikes against Israel.
The market was on edge as it awaited a response from Iran. An aggressive response could lead to a wider conflict in the Middle East and jeopardize oil supplies. The situation was exacerbated by production problems in Libya
The report notes that the National Oil Corporation of Libya declared force majeure at its Sharara oil field on Tuesday, so the company gradually reduced production from the field due to protests.
Attacks on ships in the Red Sea have forced tankers to take longer routes, which means more oil stays on the water longer.
Overall, US crude oil inventories fell by 3.7 million barrels, far exceeding analysts' expectations of a 700,000 barrel decline and marking the sixth weekly decline to a six-month low.
"This suggests that demand for physical barrels remains strong despite concerns about weak economic activity," ANZ analysts said in a note.
Citi analysts believe that there is a possibility of a rebound in Brent oil prices to the low to mid-$80s.
"Upside risks to the market remain, starting with a still-tight balance sheet through August, heightened geopolitical risks in North Africa and the Middle East, the likelihood of weather-related disruptions due to hurricane season, and lightly managed cash positioning," Citi said in a note.
Recall
The death of the Hamas leader in Iran has increased tensions in the Middle East, which caused the price of oil to rise by $2 last week.
