As the world’s top investment manager and financial market journalist, I am here to bring you the latest updates on the oil market. In Asian trade on Thursday, oil prices saw a significant rise, continuing a strong rebound from the previous session. This surge was fueled by the news of Hamas’ leader being killed in Iran, which heightened fears of a potential larger conflict in the Middle East.
The focus is also on the upcoming meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+), where investors are looking for clues on the cartel’s production plans. Additionally, U.S. inventory data showed a larger-than-expected decrease for the fifth consecutive week, indicating strong fuel demand during the summer travel season.
At the time of writing, Brent crude oil prices for October delivery rose by 0.5% to $81.24 a barrel, while WTI crude oil prices rose by 0.6% to $77.30 a barrel.
The recent killing of Hamas’ leader in Iran has raised concerns of retaliation from the group against Israel, potentially escalating tensions in the region. This, coupled with Israel’s offensive in Gaza and missile exchanges with Iran-backed Hezbollah, has heightened fears of a larger conflict disrupting oil supply from the Middle East.
Looking ahead, the OPEC+ Joint Ministerial Monitoring Committee is set to meet later on Thursday, with no major changes expected in production levels despite recent price declines. However, top producers Saudi Arabia and Russia are likely to emphasize their commitment to production cuts.
While oil prices have rebounded, concerns over China’s economic recovery have limited gains. Weak purchasing managers index readings and a contraction in China’s manufacturing sector have raised calls for more stimulus measures from Beijing.
In conclusion, the geopolitical tensions in the Middle East, OPEC+ meeting outcomes, and China’s economic outlook will continue to impact oil prices in the coming days. Investors should stay informed and monitor these developments closely to make well-informed decisions regarding their finances.