Oil Hits $80 Amidst Escalating Tensions in Middle East
Oil prices jumped near $80 per barrel in the global commodities market following a major clash between Hezbollah and Israel over the weekend. On the positive side, U.S. Fed interest rate cuts lifted the demand outlook even with downside demand pressure relating to weak data in China.
Brent crude rose by 2.6% to $80.20 a barrel, breaking above $80 a barrel for the first time since mid-August, while US WTI increased by 3.2% to $77.18 a barrel at last look early Monday.
The Israeli – Hezbollah latest clash raised fears that the escalation of the conflict in the Middle East could disrupt oil supplies in the region and worsen into a regional conflagration that would draw in Hezbollah’s backer Iran and Israel’s main ally, the U.S.
U.S. Federal Reserve Chair Jerome Powell’s endorsement of the start of interest rate cuts also provided support for oil prices. “The prospect of easing monetary policy boosted sentiment across the commodity complex,” ANZ analysts said in a note.
Elsewhere, the number of oil rigs in the United States were unchanged at 483 for the week ended Friday, according to data compiled by energy services company Baker Hughes.
The tally for gas fell by one to 97 on a weekly basis, while miscellaneous rigs were unchanged at five. A year earlier, the US had 512 oil, 115 gas and five miscellaneous rigs in operation, company data showed.
Overall, 585 rigs were operating in the US this week, down from 632 a year earlier. Among US states, top producer Texas added one rig, while North Dakota lost two rigs.
Across North America, oil-and-gas rigs rose by one on a weekly basis to 804, compared with 822 at the same point last year. The count in Canada increased to 219 rigs from 217 a week earlier.
West Texas Intermediate crude oil was up 2.6% at $74.93 a barrel in Friday late-afternoon trade, but was on course for a weekly loss. #Oil Hits $80 Amidst Escalating Tensions in Middle East Naira Slides as Nigerians Import Appetite Rises
