Investors are also following the drop in imports from China and the elections in Venezuela.
The prices of the Petroleum were stable on Monday, due to fears that the conflict in middle East after a rocket was launched in the Golan Heights, occupied by Israel.
Brent crude futures were up 7 cents, or 0.09%, at $81.20 a barrel this morning, while U.S. crude futures were up 1.7 cents, or 0.09%, at $81.20 a barrel West Texas Intermediate (WTI) rose 1 cent, or 0.01 percent, to $77.17.
Brent and WTI lost 1.8% and 3.7% respectively last week due to falling Chinese demand and hopes for a ceasefire deal in Gaza.
“A rather muted open greeted oil prices after Middle East tensions were back on the menu due to a reported Hezbollah attack,” said PVM analyst John Evans, referring to the attack on the Golan Heights.
Tensions in the Middle East continue and the market is worried
On Sunday, the Israeli security cabinet authorized the government of Prime Minister Benjamin Netanyahu to decide the “manner and timing” of the response to the attack that killed 12 teenagers and children. Israel vowed to retaliate in Lebanon against Hezbollah, supported by Iran, which denied responsibility for the attack. On Sunday, Israeli aircraft attacked targets in the south of the Lebanon.
Tensions have spilled over into several fronts and risk spilling into a wider regional conflict, raising investor concerns about the potential impact on crude output in the world’s largest oil-producing region.
Other concerns
Data released this month showed that total fuel oil imports from China fell 11% in the first half of 2024, raising concerns about the demand outlook in the world’s largest crude importer.
Prices also fell on Friday after news broke that the massive Dangote oil refinery in Nigeria is reselling cargoes of US and Nigerian crude after experiencing technical problems at the refinery.
Meanwhile, markets are keeping an eye on oil producer Venezuela after the country’s electoral authority said the president Nicolas Maduro won a third term with 51% of the vote despite multiple exit polls pointing to an opposition victory.
USA had previously said it would “calibrate” its sanctions policy toward Venezuela based on how elections develop in the member country of the OPEC.
Source: Ambito
