By Katya Golubkova
Oil prices are on the rise as concerns over potential supply disruptions from the Middle East escalate. Israel’s increased attacks on Iranian-backed forces have raised fears of a wider conflict in the region, pushing prices higher.
Currently, futures for November delivery are up 0.22% to $72.14 a barrel, while the December delivery contract has gained 0.14% to $71.64. U.S. West Texas Intermediate crude futures also added 0.12% to $68.26 a barrel.
Last week saw a decline in prices, with Brent falling by 3% and WTI by 5% due to demand worries after China’s fiscal stimulus failed to reassure the market. However, the recent escalation of attacks in the Middle East has supported prices, with the possibility of Iran being drawn into the conflict.
Israel’s actions in Yemen and Lebanon have heightened tensions, prompting the U.S. to reinforce its presence in the region. Federal Reserve Chair Jerome Powell’s upcoming remarks will also be closely watched for insights into the Fed’s monetary policy easing.
Despite these geopolitical tensions, OPEC and its allies plan to increase output in December, and oil exports from Libya are expected to resume, keeping prices under pressure.
Overall, investors should closely monitor developments in the Middle East and the Fed’s statements for potential impacts on oil prices and market volatility.
Analysis: Geopolitical tensions in the Middle East are driving oil prices higher, while market dynamics and central bank policies could influence future price movements. Stay informed and be prepared for potential market shifts.