TOKYO: Oil prices fell on Monday, partially reversing Friday’s rally investors waiting to see if the Israel-Hamas conflict attracts other countries, which could drive up prices and deal another blow to the global economy.
Brent futures fell 34 cents, or 0.4%, to $90.55 a barrel, and U.S. West Texas Intermediate (WTI) crude fell 41 cents, or 0.5%, to $87.28 a barrel against 0048 GMT.
Both benchmarks rose nearly 6% on Friday, posting their highest daily percentage gains since April, as investors priced in the possibility of broader conflict in the Middle East.
Brent posted a gain of 7.5% this week, while WTI rose 5.9%.
“Investors are trying to determine the impact of the conflict, while a large-scale ground attack has not yet begun after the 24-hour deadline that Israel first gave to residents of the northern half of Gaza to flee south,” Hiroyuki said Kikukawa. president of NS Trading, part of Nissan Securities.
“The impact that oil producing countries may have has been factored into prices to some extent, but if there were to actually be a ground invasion that would impact oil supplies, prices could easily exceed $100 per barrel,” he said. he.
The conflict in the Middle East has had little impact on global oil and gas supplies, and Israel is not a major producer.
But the war between Islamist group Hamas and Israel poses one of the biggest geopolitical risks to oil markets since Russia’s invasion of Ukraine last year, amid concerns about a possible escalation involving Iran.
Market participants are assessing what a broader conflict could mean for supplies from countries in the world’s largest oil-producing region, including Saudi Arabia, Iran and the United Arab Emirates.
Israeli Prime Minister Benjamin Netanyahu vowed Sunday to destroy Hamas as his forces prepare to enter the Gaza Strip in search of Hamas militants whose deadly rampage through Israeli border towns shocked the world.
Iran warned on Saturday that if Israel’s “war crimes and genocide” are not stopped, the situation could spiral out of control with “far-reaching consequences.”
Now that there are fears that the conflict is escalating, the US Secretary of… State Anthony Blinken will return to Israel on Monday to discuss “the way forward” after several days of shuttle diplomacy between Arab states.
Limiting oil price losses was the US move last week to impose the first sanctions on owners of tankers carrying Russian oil above the G7 price ceiling of $60 a barrel. Ukraine.
Russia is one of the world’s largest exporters of crude oil, and stricter U.S. supervision of its shipments could limit supply.
Brent futures fell 34 cents, or 0.4%, to $90.55 a barrel, and U.S. West Texas Intermediate (WTI) crude fell 41 cents, or 0.5%, to $87.28 a barrel against 0048 GMT.
Both benchmarks rose nearly 6% on Friday, posting their highest daily percentage gains since April, as investors priced in the possibility of broader conflict in the Middle East.
Brent posted a gain of 7.5% this week, while WTI rose 5.9%.
“Investors are trying to determine the impact of the conflict, while a large-scale ground attack has not yet begun after the 24-hour deadline that Israel first gave to residents of the northern half of Gaza to flee south,” Hiroyuki said Kikukawa. president of NS Trading, part of Nissan Securities.
“The impact that oil producing countries may have has been factored into prices to some extent, but if there were to actually be a ground invasion that would impact oil supplies, prices could easily exceed $100 per barrel,” he said. he.
The conflict in the Middle East has had little impact on global oil and gas supplies, and Israel is not a major producer.
But the war between Islamist group Hamas and Israel poses one of the biggest geopolitical risks to oil markets since Russia’s invasion of Ukraine last year, amid concerns about a possible escalation involving Iran.
Market participants are assessing what a broader conflict could mean for supplies from countries in the world’s largest oil-producing region, including Saudi Arabia, Iran and the United Arab Emirates.
Israeli Prime Minister Benjamin Netanyahu vowed Sunday to destroy Hamas as his forces prepare to enter the Gaza Strip in search of Hamas militants whose deadly rampage through Israeli border towns shocked the world.
Iran warned on Saturday that if Israel’s “war crimes and genocide” are not stopped, the situation could spiral out of control with “far-reaching consequences.”
Now that there are fears that the conflict is escalating, the US Secretary of… State Anthony Blinken will return to Israel on Monday to discuss “the way forward” after several days of shuttle diplomacy between Arab states.
Limiting oil price losses was the US move last week to impose the first sanctions on owners of tankers carrying Russian oil above the G7 price ceiling of $60 a barrel. Ukraine.
Russia is one of the world’s largest exporters of crude oil, and stricter U.S. supervision of its shipments could limit supply.
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