Oil futures experience upswing amid Middle East renewed geopolitical tensions
Date
12/4/2023 3:22:35 AM
(MENAFN) Oil futures experienced an upswing on Monday, fueled by renewed geopolitical tensions in the Middle East, which raised concerns about potential disruptions in the region's oil supplies. However, the overall outlook for the sector remains clouded by uncertainties surrounding voluntary production cuts by the OPEC+ alliance and the trajectory of global fuel demand.
As of 0018 GMT, brent crude futures exhibited a 0.4 percent increase, climbing 28 cents to reach USD79.16 per barrel. Simultaneously, US West Texas Intermediate crude futures saw a similar uptick, rising 0.4 percent or 29 cents to settle at USD74.36 per barrel.
Market analyst Tony Sycamore from IG Markets highlighted the impact of geopolitical tensions on oil prices, stating that the re-emergence of such tensions over the weekend provided a boost to lower crude oil prices upon the market's reopening. Sycamore specifically pointed to escalating tension in the Middle East, attributing it to the resumption of Israeli attacks in Gaza.
The US military reported on Sunday that fighting had recommenced in Gaza, coupled with three commercial ships being attacked in international waters in the southern Red Sea. Analyst Tina Teng from CMC Markets affirmed that the resurgence of conflict between Israel and Hamas contributed to the upward momentum in oil prices.
However, Teng also noted that oil prices could face continued pressure due to the sluggish pace of economic recovery in China and the concurrent increase in US production. These factors introduce complexities and uncertainties into the oil market dynamics, as it grapples with both geopolitical developments and broader economic indicators.
MENAFN04122023000045015682ID1107529826
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.