Oil Prices Rally Ahead of Iran Attacks on Israel
The global commodities market rallied further with oil prices maintaining an uptrend on Friday as the market braced for a potential direct attack on Israel from Iran during the weekend. Brent crude is up 1% at $90.67 a barrel, while US West Texas Intermediate (WTI) trade 1.2% higher at $86.07 a barrel.
A direct confrontation between Israel and Iran would signal a dramatic escalation of conflict in the Middle East, leading to a significant rise in crude on fears of supply disruptions, according to market watchers.
But prospects of higher-for-longer interest rates dampening demand are capping further price gains. Meanwhile, the International Energy Agency trimmed its oil-demand growth forecast for this year on weaker consumption in wealthier countries, and said it expects growth to slow further next year. Naira Suffers Big, CBN Goes Ballistic Against FX Whales
The IEA cut its forecast for oil-demand growth this year and said the pace of expansion is set to further decelerate in 2025 as the post-pandemic rebound runs its course and the electric-vehicle rollout weighs on consumption.
Oil demand growth is now seen at 1.2 million barrels a day from previously 1.3 million barrels a day, the Paris-based organization said in its latest monthly report. Total demand is still expected to average 103.2 million barrels a day.
Demand continued to lose momentum at the start of the year, growing 1.6 million barrels a day in the first quarter, below the IEA’s expectations due to significantly weak deliveries in OECD countries. Unusually warm weather curtailed heating use, while a protracted factory slump in advanced economies continued to reduce demand for industrial fuels.
