A Mobil gas station in Los Angeles, California, USA, on Tuesday, April 2, 2024. U.S. crude oil futures in New York hit $85 a barrel for the first time since October as OPEC+ production cuts supported a steady strengthening of the market.
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Crude oil futures rose on Thursday, recouping early losses as tensions in the Middle East continued to rise.
West Texas Intermediate Oil The price of crude oil for May delivery rose by US$1.16, or 1.36%, to close at US$86.59 per barrel. Brent The price of crude oil for June delivery rose $1.30, or 1.45%, to $90.65 a barrel. This is the highest settlement price between the two parties since October 20.
The Jerusalem Post reports that the Israeli embassy has been sealed High alert Iran has vowed to retaliate against a missile attack on its consulate in Damascus earlier this week. The Israel Defense Forces has canceled home leave for combat troops due to the escalating confrontation with Tehran, the Israel Defense Forces reported. times of israel.
President Joe Biden warned Israeli Prime Minister Benjamin Netanyahu on Thursday that strikes targeting aid workers and the humanitarian situation in Gaza are “unacceptable.” Biden told Netanyahu that U.S. policy on the war in Gaza will depend on what Israel does to address humanitarian suffering.
The president’s warning follows an Israeli attack this week that killed seven World Central Kitchen aid workers, including a dual U.S.-Canadian citizen.
Oil prices have risen this year, rising for three consecutive months, with U.S. crude rising nearly 21% and Brent crude rising 18%. The rally was driven by geopolitical tensions in the Middle East and Eastern Europe and tightening global crude oil markets.
Escalating tensions between OPEC members Iran and Israel have reignited concerns that conflict in the Middle East could squeeze oil supplies. But John Kilduff, a founding partner at Again Capital, said Ukraine’s drone attacks on Russian oil infrastructure were the real factor affecting prices.
“The threshold for any major fires in the region that could affect the flow of oil is much higher than people think,” Kilduff said of the Middle East.
“The Ukrainian attack on Russian infrastructure really caught the market’s attention,” Kilduff said. “We damaged Russia’s refining infrastructure and other infrastructure, affecting their production capabilities.”
“For the first time probably since this war began, we’re finally taking significant amounts of Russian supply off the market,” Kilduff said. “Despite the Biden administration asking them to stop, they’re not stopping.”
The national average price of gasoline was $3.57 a gallon on Thursday, the highest level since Oct. 18, according to AAA. Natural gas prices typically rise as the summer driving season approaches, but rising geopolitical tensions and a tight crude oil market are also at play.
Bank of America said the global oil market is expected to post a deficit of 450,000 barrels per day in the second quarter as demand grows, while global inventories fall as OPEC+ members voluntarily cut production.
The OPEC+ committee on Wednesday recommended no changes to the group’s current production policy. Some member countries have voluntarily cut production by 2.2 million barrels per day.
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