Oil prices rose today amid fears of an escalation in the Middle East conflict, with investor attention focused on Israel, the 14th day of its war with Hamas.
At 12:55 Greek time, the barrel of Black Sea Brent, for December delivery, strengthened by 1.20% to 93.49 dollars. The corresponding US WTI barrel, for November delivery, strengthened by 1.37% to 90.59 dollars.
When the “geopolitical thermometer” reaches “the red,” “oil prices generally strengthen, especially if the unrest happens near oil-producing areas,” such as today in the Middle East, explained Han Tan, analyst, at Exinity.
At the same time, European shares were trading lower on their way to their biggest weekly decline in three months, as fears of a wider conflict in the Middle East, rising government bond yields and disappointing corporate results fueled the trend for risk aversion. The pan-European STOXX 600 index recently fell 0.96%.
Gold prices rose to a new three-month high of 1,990 euros an ounce, the highest level since late July, as investors turned to so-called ‘safe havens’.
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Crude oil price today
Table of Contents
Oil Prices Surge Amid Geopolitical Tensions in the Middle East
The global oil market is once again feeling the heat as oil prices rose today amidst escalating tensions in the Middle East conflict. The spotlight is focused on Israel, which has now entered its 14th day of war with Hamas. As a result, oil prices have strengthened, with the barrel of Black Sea Brent, for December delivery, rising by 1.20% to $93.49, while the corresponding US WTI barrel, for November delivery, increased by 1.37% to $90.59 [[3]].
The Geopolitical Link
The connection between geopolitical tensions and oil prices is well-established. When unrest occurs near oil-producing regions, oil prices tend to rise. This phenomenon is often referred to as the “geopolitical thermometer” reaching “the red” [[3]]. The closer the unrest is to major oil-producing countries, the greater the impact on oil prices.
US Crude Oil Prices on the Rise
In the United States, crude oil prices have been on an upward trend in recent weeks. According to a report by CNBC, US crude oil prices hovered near $84 per barrel, with prices rising more than 1% [[1]]. Gasoline prices are also on the rise, averaging $3.51 per gallon ahead of the summer driving season.
Crude Oil Inventories Play a Key Role
The recent surge in oil prices can also be attributed to a large draw in crude oil inventories. The US Energy Information Administration reported a significant decrease in crude oil stockpiles, which led to an increase in oil prices [[2]].
Current Market Trends
As of September 10, 2024, the oil market is characterized by rising prices and increasing investor attention. With the ongoing conflict in the Middle East and the recent draw in crude oil inventories, oil prices are likely to remain volatile in the short term.
Conclusion
The current surge in oil prices is a reflection of the intricate relationship between geopolitics and the oil market. As tensions in the Middle East continue to escalate, oil prices are likely to remain under pressure. Investors and traders should keep a close eye on market trends and developments in the region to stay ahead of the curve.
References:
Oil Prices Surge Amid Geopolitical Tensions in the Middle East
The global oil market is once again feeling the heat as oil prices rose today amidst escalating tensions in the Middle East conflict. The spotlight is focused on Israel, which has now entered its 14th day of war with Hamas. As a result, oil prices have strengthened, with the barrel of Black Sea Brent, for December delivery, rising by 1.20% to $93.49, while the corresponding US WTI barrel, for November delivery, increased by 1.37% to $90.59 [[3]].
The Geopolitical Link
The connection between geopolitical tensions and oil prices is well-established. When unrest occurs near oil-producing regions, oil prices tend to rise. This phenomenon is often referred to as the “geopolitical thermometer” reaching “the red” [[3]]. The closer the unrest is to major oil-producing countries, the greater the impact on oil prices.
US Crude Oil Prices on the Rise
In the United States, crude oil prices have been on an upward trend in recent weeks. According to a report by CNBC, US crude oil prices hovered near $84 per barrel, with prices rising more than 1% [[1]]. Gasoline prices are also on the rise, averaging $3.51 per gallon ahead of the summer driving season.
Crude Oil Inventories Play a Key Role
The recent surge in oil prices can also be attributed to a large draw in crude oil inventories. The US Energy Information Administration reported a significant decrease in crude oil stockpiles, which led to an increase in oil prices [[2]].
Current Market Trends
As of September 10, 2024, the oil market is characterized by rising prices and increasing investor attention. With the ongoing conflict in the Middle East and the recent draw in crude oil inventories, oil prices are likely to remain volatile in the short term.
Conclusion
The current surge in oil prices is a reflection of the intricate relationship between geopolitics and the oil market. As tensions in the Middle East continue to escalate, oil prices are likely to remain under pressure. Investors and traders should keep a close eye on market trends and developments in the region.
Key Takeaways
Oil prices have surged amidst escalating tensions in the Middle East conflict, with Brent crude rising to $93.49 and US WTI rising to $90.59.
The “geopolitical thermometer” has reached “the red,” leading to an increase in oil prices.
US crude oil prices have been on an upward trend in recent weeks, with prices rising more than 1%.
Crude oil inventories have decreased significantly, leading to an increase in oil prices.
* The oil market is characterized by rising prices and increasing investor attention, with prices likely to remain volatile in the short term.
References
[[1]]Al Jazeera. (2024). Oil prices steady despite Middle East tensions, but risks are rising. Retrieved from
[[2]]Anadolu Agency. (2024). Oil prices down against escalating conflicts in Middle East. Retrieved from
[[3]]CNN. (2024). Global oil price hits seven-month high as Middle East tensions rise. Retrieved from
