Oil Prices Rise Amidst U.S Election, Middle East Tensions
Oil prices increase further ahead of the U.S. election. Prices of crude oil have advanced in the global commodities market after the OPEC+ decision to delay output hikes following the World Bank supply glut prediction.
Prices are also supported by Middle East tensions, with Iran telling diplomats it is planning a strong response against Israel. Brent crude rises 0.4% to $75.37 a barrel, while WTI is up 0.4% at $71.77 a barrel. All eyes are now on the outcome of the tight race between Vice President Harris and former President Trump.
Millions of Americans will head to the ballot box today to vote not only for the next US president, but also for Congress, state governors, and local government officials.
Analysts state that investors are avoiding taking risky positions in the runup to the US presidential election. Experts are also focused on the interest rate decision by the US Federal Reserve (Fed) which will be announced on Thursday, as the data could give clues about economic growth in the country.
Market players believe economic activity will be shaped according to the election results in the US, the world’s largest oil consuming country, which will also affect the country’s oil demand. The decline in prices is partly due to the possibility of a ceasefire in Gaza as negotiations to reach peace in the region continue.
Palestinian President Mahmoud Abbas, in his speech on Monday at the World Urban Forum in Cairo, the capital of Egypt, said that it is time to implement the decision of the United Nations Security Council on the implementation of a cease-fire in the Gaza Strip, which was adopted by the UNSC on June 10.
Palestinian President Abbas also met with his Egyptian counterpart Abdel Fattah el-Sisi in Cairo. The Egyptian President said that intense efforts are ongoing to achieve a cease-fire in the Gaza Strip.
Though news reports that Israel rejected all cease-fire proposals limit the decline in prices. Despite a daily decrease in oil prices on Tuesday, prices have been on an upward trend since October 28.
The price increase is due to the OPEC+ group’s announcement that they will delay an increase in oil production and reports that Iran is preparing to retaliate for the October 26 Israeli attack and the ongoing tension in the Middle East.
