2023-10-13 21:48:08
Escalating tensions in the Middle East pushed crude oil futures prices to soar nearly 6% on Friday (13th), leading a weekly rise.
Israel has ordered the approximately 1.1 million Palestinians in Gaza to move south within the next 24 hours. The market is worried that Israel is regarding to launch a ground invasion of Gaza. If the conflict spreads to Iran or other oil producers, oil supplies in the Middle East will face the risk of disruption.
Energy Commodity Prices West Texas Intermediate crude oil futures for November delivery rose $4.78, or 5.8%, to settle at $87.69 a barrel. Delivered in DecemberBrent crude oil (Brent) futures rose $4.89, or 5.7%, to $90.89 a barrel.
according toDow JonesMarket data, most recent month WTI crude oilFutures rose 5.9% this week,Brent crude oilFutures rose 7.5%.
The price of gasoline futures for November delivery surged 4.6% to close at $2.27 per gallon, a weekly increase of 3.3%. Delivered in NovemberThermal Fuel FuturesPrices rose 5.5% to close at $3.21 per gallon, a weekly increase of 10.7%. Natural gas futures for November delivery fell 3.2% to settle at $3.24 per million Btu, falling 3.1% this week.market drivers
Lukman Otunuga, market analysis manager at FXTM, said rising geopolitical risks in the Middle East, which holds nearly a third of the world’s oil supplies, led oil prices to rise on Friday, while the United States tightened sanctions on Russian crude exports, adding to the Rising momentum in oil prices.
The market is highly focused on real-time geopolitical news in the Middle East. After the Israeli military issued an evacuation order for residents of northern Gaza,WTI crude oilIt closed higher for the first time in four trading days.
However, the United Nations strongly called on Israel to revoke the evacuation order, because it is not only impossible to evacuate a huge population in a short period of time, but also a catastrophic tragedy. After Israel issues a withdrawal order, the next step may be a massive attack on Gaza.
Otunuga noted that the spread of conflict between Israel and Hamas in the region has heightened concerns regarding supply risks, adding to an already tight market. However, while oil prices may continue to be supported by tighter supply, there may be headwinds in demand going forward – especially given concerns regarding a global recession.
Bloomberg reported on Friday that Iran’s foreign minister said that if Israel continues to besiege Gaza and launch attacks, Iran-backed Hezbollah militants may also open another front in the region.
Hamas launched an attack on Israel a week ago, killing more than 1,200 people. Israel then counterattacked and bombed Gaza 24 hours a day for six consecutive days. It has dropped 6,000 missiles and bombs on Gaza. So far, the Israeli-Palestinian conflict has caused More than 2,800 people on both sides died.
The U.S. Energy Information Administration (EIA) announced on Thursday that U.S. commercial crude oil inventories increased by 10.2 million barrels last week (ending October 6), and U.S. oil production increased to the highest level in history. WTI crude oilFutures prices ended lower.
Otunuga believes that from a technical perspective on oil prices, WTI bulls still have to climb a steep hill before reaching $100, but oil prices returning above $87.50 may be the first sign of bulls regaining lost ground.
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