The price falls due to diplomatic efforts to cool the war conflict

The price falls due to diplomatic efforts to cool the war conflict

The price of a barrel of oil fell today in New York after some diplomatic efforts that managed to calm military tension in the Middle East, which caused a decrease in demand for crude oil globally.

The barrel of the WT varietyI fell 2.3% and traded at $83.50; while the Brent rate fell 2.2% and closed at $88.10according to figures provided by the New York Mercantile Exchange (NYMEX).

Fear that the conflict between Israel and the Palestinian group Hamas will affect global crude oil supplies, which could implicate Iran and its allies in the region, has been supporting oil prices in recent weeks.

By midday Thursday, however, fears were fading. “The security premium we’ve been paying since the beginning of the month appears to be deflating,” said John Kilduff, partner at Again Capital LLC.

The United States and other countries are urging Israel to delay a full invasion of Gazaafter almost three weeks of Israeli bombings.

After almost three weeks of Israeli bombings on Gaza, the situation seems bogged down and conditioned by the hostages, under fear that other participants will join the conflict.

Two elements also influenced the drop in crude oil. On the one hand, Concerns about the global economy and rising Treasury yields US, which once again approached 5%, discouraging risky investments.

On the other hand, the rise in crude oil inventories in the United States and the oversupply in refineries show that, for now, demand is satisfied.

In this context, the US economy grew at a faster pace in the third quarter, official data showed this Thursday, which increases expectations that the Federal Reserve (FED) will raise interest rates and keep them high for longer. .

Meanwhile, the United States reported that crude oil imports from the nations that make up the Organization of the Petroleum Exporting Countries and its allies (OPEC+) had decreased over the last year.

Natural gas futures contracts for delivery in November rose 7.5%, trading at $3.24 per million BTU.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts