{"id":903,"date":"2023-10-09T08:47:15","date_gmt":"2023-10-09T08:47:15","guid":{"rendered":"https:\/\/ge63.com\/?p=903"},"modified":"2023-10-10T05:31:53","modified_gmt":"2023-10-10T05:31:53","slug":"middle-east-oil-increase","status":"publish","type":"post","link":"https:\/\/ge63.com\/middle-east-oil-increase","title":{"rendered":"Middle East conflict sparks $3 surge in oil prices amid supply concerns"},"content":{"rendered":"\n
Oil prices surged by over $3 per barrel in Asian trading on Monday, propelled by intensifying military confrontations between Israel<\/a> and the Palestinian<\/a> Islamist group Hamas. This deepening political uncertainty in the Middle East has sparked concerns about potential disruptions to oil<\/a> supplies.<\/p>\n\n\n\n Brent crude recorded a notable increase of $3.10, equivalent to 3.67%, reaching $87.68 per barrel as of 0400 GMT. Simultaneously, U.S. West Texas Intermediate (WTI) crude saw a rise of $3.26, or 3.94%, bringing it to $86.05 per barrel. Initially, both benchmarks experienced even more substantial gains, exceeding $4 per barrel before slightly tapering off.<\/p>\n\n\n\n Analysts from ANZ Bank noted, <\/p>\n\n\n\n “Increasing geopolitical risk in the Middle East should support oil prices, with higher volatility to be expected.”<\/p>\n<\/blockquote>\n\n\n\n This recent surge in oil prices marked a reversal of the previous week’s downward trend, the most significant weekly decline since March. During that period, Brent had fallen approximately 11%, while WTI had retreated more than 8%. These declines were driven by concerns about rising interest rates and their potential impact on global demand for oil.<\/p>\n\n\n\n Hamas launched its most extensive military attack on Israel in decades on Saturday, resulting in the loss of hundreds of lives among Israelis and triggering a wave of retaliatory Israeli airstrikes on Gaza, which has claimed over 400 lives.<\/p>\n\n\n\n Energy analyst Saul Kavonic emphasized, “The risk premium on oil is rising due to the prospect of a wider conflagration that could spread to nearby major oil-producing nations such as Iran and Saudi Arabia.”<\/p>\n\n\n\n The escalating violence also poses a threat to U.S. efforts to mediate a reconciliation between Saudi Arabia and Israel, which could involve the normalization of relations between the two and a defense pact between Washington and Riyadh. Saudi officials reportedly expressed their willingness to increase oil output next year as part of this proposed agreement.<\/p>\n\n\n\n Such an increase in Saudi oil production would have helped alleviate supply constraints that had persisted due to months of production cuts by key producers, including Saudi Arabia and Russia.<\/p>\n\n\n\n\n