403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Oil rates remain at 8-month low amid concerns of recession
(MENAFN) On Monday, oil prices remained at eight-month lows as the threat of a U.S. recession overshadowed concerns that escalating tensions in the Middle East could disrupt supplies from the world's largest oil-producing region. By 0035 GMT, Brent crude futures had slipped 4 cents, or 0.1 percent, to USD76.77 a barrel. Similarly, West Texas Intermediate (WTI) crude futures had fallen 13 cents, or 0.2 percent, to USD73.39 a barrel, according to a UK news agency.
The drop in prices came despite ongoing conflict in Gaza, where Palestinian officials reported that Israeli warplanes bombed two schools on Sunday, resulting in at least 30 deaths. This occurred a day after negotiations in Cairo ended without any progress. Both Israel and the United States are bracing for a potential escalation in the region following vows from Iran and its allied militias, Hezbollah and Hamas, to retaliate for the recent assassinations of Ismail Haniyeh, the head of Hamas's political bureau, and Fuad Shukr, a notable Hezbollah military commander.
ANZ noted in a statement that any intensification of the conflict could impact crude exports, a concern reflected in the markets. Nevertheless, Brent and WTI futures saw a decline of over 3 percent last week, closing at their lowest levels since January. This marked the fourth consecutive weekly loss for both contracts, the longest losing streak since November. The market volatility highlights the ongoing anxiety about potential supply disruptions against the backdrop of geopolitical instability.
Compounding these fears are worries about a looming recession in the United States. Additionally, OPEC+, an alliance that includes the Organization of the Petroleum Exporting Countries and other producers like Russia, is continuing its plan to gradually phase out voluntary production cuts starting in October. A survey published on Friday indicated that OPEC's oil output had increased in July despite the group's production cuts, further influencing the recent downward trend in oil prices.
The drop in prices came despite ongoing conflict in Gaza, where Palestinian officials reported that Israeli warplanes bombed two schools on Sunday, resulting in at least 30 deaths. This occurred a day after negotiations in Cairo ended without any progress. Both Israel and the United States are bracing for a potential escalation in the region following vows from Iran and its allied militias, Hezbollah and Hamas, to retaliate for the recent assassinations of Ismail Haniyeh, the head of Hamas's political bureau, and Fuad Shukr, a notable Hezbollah military commander.
ANZ noted in a statement that any intensification of the conflict could impact crude exports, a concern reflected in the markets. Nevertheless, Brent and WTI futures saw a decline of over 3 percent last week, closing at their lowest levels since January. This marked the fourth consecutive weekly loss for both contracts, the longest losing streak since November. The market volatility highlights the ongoing anxiety about potential supply disruptions against the backdrop of geopolitical instability.
Compounding these fears are worries about a looming recession in the United States. Additionally, OPEC+, an alliance that includes the Organization of the Petroleum Exporting Countries and other producers like Russia, is continuing its plan to gradually phase out voluntary production cuts starting in October. A survey published on Friday indicated that OPEC's oil output had increased in July despite the group's production cuts, further influencing the recent downward trend in oil prices.
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.
Most popular stories
More Story
Comments
No comment