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International oil prices fall, keeping an eye on the Israeli-Palestinian war… WTI lowest in 3 weeks

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Brent crude oil $87.45… WTI fell 3.8 to $82.31.

On the 30th (local time), four days after Israel’s ground invasion of the Gaza Strip, international oil prices closed lower, keeping an eye on the situation in which escalating tensions in the Middle East are being contained.

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According to Market Watch, West Texas Intermediate (WTI) for December delivery closed at $82.31 per barrel on the New York Mercantile Exchange, down $3.23 (3.8%) on this day.

This is the lowest price since the 5th, before the war between Israel and Hamas broke out.

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Brent crude oil for December delivery, the international crude oil benchmark, fell $3.03 (3.4%) to end trading at $87.45 per barrel on the London ICE Futures Exchange, hitting the lowest since the 12th.

The market believed that there were currently no factors that could rapidly escalate tensions in the Middle East as Israel cautiously proceeded with the ground war in the Gaza Strip.

“Oil prices fell as there were no immediate disruptions to global supply and there were signs that Asian oil demand may ease slightly,” Phil Flynn, chief market analyst at Price Futures Group, said in a daily report.

However, he predicted, “As the global oil market is still very tight and there is no room for supply interruption, the decline may be short-lived as the market watches the progress of Israel’s invasion of Gaza.”

Experts believe that they will react sensitively to the unfolding war between Israel and Hamas, especially to signals of direct confrontation between Israel and Iran.

UBS predicted in a memo that day, “If Iranian intervention leads to a decline in Iran’s oil exports, it could put pressure on an already limited market and cause the price of Brent crude oil to rise from the current level of about $89 to $100 to $110.”

At the same time, he pointed out that a widespread war should be avoided, saying, “If the conflict expands throughout the (Middle East) region, oil prices could soar to $120 per barrel.”

The World Bank also predicted through its ‘Raw Material Market Outlook’ today that international oil prices will fall to $81 per barrel by next year, but if the war between Israel and Hamas expands to the scale of the 1973 Yom Kippur War, it could soar to $150 to $157. expected.

Israel-Palestine War

Source: Donga

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