The prices of Petroleum fell in early Asian operations on Monday after Israel said it had “concluded” a series of attacks in southern Loop, slightly easing concerns about supply from Middle East.
The geopolitical risks, among them the feared extension of the Palestinian-Israeli conflict to the entire region and the possible interruption of oil supplies in middle Eastdrove prices up around 6% last week.
The movements of the Middle East
The Israeli military said on Monday it had carried out a “series of attacks” in southern Loop that have already “concluded”, days after the Israeli prime minister, Benjamin Netanyahurejected a Hamas ceasefire proposal.
The logistical disruptions in the Red Sea remained one of the main concerns of investors. The agency of UK Maritime Trade Operations (UKMTO) reported early Monday the attack by a ship with two missiles south of the Yemeni town of Al Mukha.
The Houthi movement Yemen, aligned with Iran, which control the most densely populated regions of the country, have repeatedly sent drones and fired missiles at commercial ships since mid-November.
They claim that the attacks are a response to military actions by Israel in Gaza. The campaign has shaken global shipping, prompting several companies to discontinue their voyages to the Red Sea and opt for a longer, more expensive route around Africa.
Although concerns about supply in middle East remained relatively high, news from USA They alleviated some concerns.
The influence of the United States
The energy companies Americans increased the number of oil and natural gas platforms to its highest level since mid-December, which could indicate an increase in production. National production returned last week to a record of 13.3 million barrels per day (bpd).
Concern about the lawsuit continued, while a person responsible for the Federal Reserve declared that he had no interest in recommending an interest rate cut, thus joining the chorus about the need to continue curbing inflation. Higher interest rates slow economic growth, which dampens demand for oil.
Trading in Asia is expected to be thin as most of the region, including China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Vietnam and Malaysia, It is closed for holidays.
The financial markets of China continental are closed for the Lunar New Year holidays and will resume their activity on Monday, February 19. Hong Kong trading will resume on February 14.
Source: Ambito
