Oil rises on fears of escalating tensions in the Middle East
Oil rises on fears of escalating tensions in the Middle East
07:40 GMT – Oil prices are rising as fears grow that the conflict in Israel and Gaza could spread across the region. Brent crude is up 1.7% at $87.44 a barrel while WTI is up 1.9% at $84.52 a barrel. “The risk to oil markets lies in the widening conflict,” ANZ said in a note. If Iran becomes involved in the conflict, up to 20 million barrels of oil per day could be affected either through direct disruptions or murky logistics, ANZ claims. He adds that if tensions rise, Saudi Arabia could consider ending its voluntary production cut sooner. “However, we expect them to remain in place until the end of this year, which would send the market into a deficit of 2 Mb/d in the final quarter.” (yusuf.khan@wsj.com)
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