“Crude oil prices” surge, Brent-WTI rising above 2 dollars/barrel. Worried about rising tensions in the Middle East
On October 18, 2566, Reuters news agency reported that crude oil price Oil prices surged on Wednesday (Oct 18) as tensions in the Middle East escalated after hundreds were killed in an explosion at a hospital in the Gaza Strip, raising concerns about disruptions to oil supplies in the region.
โดยBrent Oil Futures Up $2.07, or 2.3%, to $91.97 a barrel (2:25 a.m.) US West Texas Intermediate (WTI) Crude Oil Futures Up $2.26, or 2.6%, to $88.92 a barrel.
The market took into account the risk premium after an estimated 500 Palestinians were killed in a bombing of a Gaza hospital on Tuesday (Oct 17), which Israeli and Palestinian officials blamed on each other. Jordan then canceled a summit it was to host with US President Joe Biden and the leaders of Egypt and Palestine.
Vivek Dhar, analyst at the Commonwealth Bank of Australia said “The cancellation of the summit between Biden and Arab leaders reduces the possibility of a diplomatic solution to the Hamas conflict in Israel.”
The market is also concerned about a threatened Israeli ground attack on the Gaza Strip.
Vivek Dhar said, “A prolonged occupation appears to be a scenario that could push Brent oil prices above $100 a barrel, as it increases the risk that the Hamas-Israel conflict will widen and potentially directly engage Iran,”
Biden is scheduled to visit Israel on Wednesday (Oct 18) to show his support for the country's war against Hamas, and the US has said he will make clear he does not want the conflict to escalate.
Oil prices also helped support U.S. crude oil inventories, which fell by about 4.4 million barrels in the week ending Oct. 13, according to market sources citing figures from the American Petroleum Institute on Tuesday. That was far above the 300,000 barrels analysts had expected.
in the side Chinese economic demand Growth was faster than expected in the third quarter, official data on Wednesday showed, suggesting the recent recovery could be enough momentum to meet the full-year growth target.
Meanwhile, US retail sales rose more than expected in September, prompting the Federal Reserve to anticipate another interest rate hike by the end of the year. Raising interest rates to curb inflation could slow economic growth and reduce oil demand.
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