The bullish outlook for the oil market appears to depend largely on the possibility of Israel escalating its ground offensive in Gaza.
This trend is due to unfavorable economic data from China that offset concerns arising from increased tensions in the Middle East.
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Today, the oil prices experience a rebound after a 3% drop in the previous session, but remain below 90 Dollars per barrel. This trend is due to unfavorable economic data from China that counteract concerns arising from increased tensions in the Middle East.
Brent crude oil futures for December show an increase of 91 cents, equivalent to 1.04%, reaching $88.36 per barrel, before expiry on the same day. On the other hand, the contract for January, the most traded, experienced an increase of 83 cents, representing 0.96%, standing at 87.18 dollars.
American crude oil West Texas Intermediate also registered an increase of 82 cents, 1%, placing it at $83.13.
However, weak manufacturing and non-manufacturing activity data in Chinawhich are worse than expected, raise concerns about a possible decline in fuel demand from the world’s second largest oil consumer. The official Chinese Purchasing Managers’ Index misses forecasts and falls below the 50-point threshold, which marks the line between contraction and expansion of economic activity.
Oil: the data observed by the market
The bullish outlook for the oil market appears to depend largely on the possibility of Israel escalating its ground offensive in Gaza, according to CMC Markets analyst Leon Li. Israeli Prime Minister Benjamin Netanyahu rrejects calls for an end to the conflict, increasing uncertainty amid a humanitarian crisis. Israeli forces carry out attacks against Hamas in a network of tunnels under Palestinian territory.
The risk of increased tensions in the Middle East and The possible interruption in the supply of oil has led to an increase in crude oil prices of around 3.4% since the shutdown on October 6, a day before Hamas militants launched an attack on Israel.
In addition, markets are attentive to the next meeting of the US central bank, which ends on Wednesday. Despite the high probability that the Federal Reserve keep interest rates unchangedAccording to a survey by CME’s Fedwatch tool, investors continue to closely watch central bank decisions and their impact on financial markets.
Source: Ambito
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