The prices of the Petroleum Oil prices fell more than a dollar a barrel on Monday after Israeli officials said they wanted to avoid dragging the Middle East into all-out war as they responded to a deadly rocket attack in the Golan Heights occupied by Israel during the weekend.
Crude oil futures Brent U.S. crude futures fell $1.35, or 1.66%, to $79.78 a barrel. West Texas Intermediate (WTI) fell $1.35, or 1.75%, to $75.81.
Two Israeli officials told Reuters that Israel wanted to harm the Lebanese group. Hezbollahsupported by Iran and which the country blames for Saturday’s attack that killed 12 children and teenagers, but did not provoke a conflict that would escalate throughout the region.
“That implies that a ceasefire in Gaza may not be far in the future,” he said. Bob Yawgerdirector of energy futures at Mizuho in New York.
On Sunday, the Israeli security cabinet authorized the government of Prime Minister Benjamin Netanyahu to decide the “manner and timing” of responding to the attack on a sports field. Israel vowed to retaliate in Lebanon against Hezbollah, which denied responsibility for the attack. That same day, Israeli aircraft attacked targets in southern Lebanon.
The tensions have raised concerns among investors about the potential impact on crude output in the world’s largest oil-producing region, but output has so far been unaffected.
The Brent and WTI benchmarks lost 1.8% and 3.7% respectively last week due to the drop in Chinese demand hopes for a ceasefire agreement in Gaza have already disappeared.
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 plant.
Meanwhile, markets are keeping an eye on the situation in Venezuela after the country’s electoral authority declared the President Nicolas Maduro as the winner of a third term with more than 51% of the votes 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 play out in the OPEC member country.
Source: Ambito
