Following a more than 3% decline the previous session, oil prices increased in Asian trade on Tuesday as concerns about supply stoked by Middle East turmoil offset a poor showing of China statistics. Tuesday’s December Brent crude futures are scheduled to expire. As of 03:05 GMT, they had increased 36 cents, or 0.41%, to $87.81 …
Following a more than 3% decline the previous session, oil prices increased in Asian trade on Tuesday as concerns about supply stoked by Middle East turmoil offset a poor showing of China statistics. Tuesday’s December Brent crude futures are scheduled to expire. As of 03:05 GMT, they had increased 36 cents, or 0.41%, to $87.81 per barrel. January Brent crude futures, which are traded more often, increased by 29 cents, or 0.34%, to $86.64 per barrel. At $82.65 per barrel, U.S. West Texas Intermediate crude saw an increase of 34 cents, or 0.41%. Despite an intensification of Israel’s attacks on Gaza, oil sank more than 3% on Monday as investors became cautious ahead of the U.S. Federal Reserve meeting on Wednesday. Based in Shanghai, the commercial centre of China, analyst Leon Li of CMC Markets (LON:CMCX) stated, “Iran is currently only resorting to verbal deterrence. Although it implemented a ground attack, it also retreated very quickly.” “If this evolves into a full-scale invasion and there is involvement from Iran, tighter supply worries could resurface.”
Following a technical correction earlier on Tuesday, prices had recovered, and he continued, the market’s potential for upside now depends on whether Israel continues its ground offensive. “Disruptions to Iranian oil flows remain the most obvious risk to the market,” ING analysts stated in a report. Although Middle East developments have not yet affected oil supply, they noted that if the United States strictly implements sanctions once more, such lost supply might range between 500,000 and 1 million barrels per day (bpd). China is the world’s second-largest oil consumer, and weaker-than-expected manufacturing and non-manufacturing activity figures raised concerns about the country’s fuel demand slowing down. The official purchasing managers’ index fell back below the 50-point threshold that divides expansion from contraction after missing an estimate. Fears regarding Venezuela’s potential for crude exports amid the unpredictability of the election helped to support prices to some extent.
According to ING analysts, the Supreme Court’s decision to postpone the results of the opposition presidential primary this month raises doubts about the US government’s willingness to continue lifting sanctions against Venezuela. They stated that the United States has just resolved to lift sanctions in exchange for assurances of more equitable elections in 2024.
Risk Disclaimer:
Please note that this articles does not offer any instructions or suggestions regarding investment decisions. Therefore, it is essential that you carefully evaluate your financial situation and conduct thorough analysis, or seek advice from a qualified professional, before making any investment decisions.
