Oil Rises for Second Week Amid Israel-Hamas War Developments
According to the news outlet which cited people involved with the initiative, Israel first resisted a holdup in what officials said would be a large military operation to destroy Hamas. Eventually, it gave in to US pressure to postpone its assault. Israel’s public stance on the operation’s plans has recently changed, suggesting a more restrained strategy that could lower the number of civilian casualties. In the next 24 to 48 hours, trucks bringing humanitarian relief will flow into Gaza, according to President Joe Biden.
After a string of episodes that traders perceived as increasing the likelihood that the war might include Iran lifted futures earlier in the day, the developments pulled prices down on Friday. According to Israel’s military, it attacked Hamas targets in Gaza overnight and Hezbollah assets in response to fire from Lebanon. Drone assaults in Iraq and Syria have increased, according to the US, and a destroyer from that country stopped cruise missiles that the Houthi rebels in Yemen were aiming at Israel.
While still recording a second consecutive weekly gain, the more volatile December contract for West Texas Intermediate decreased to settle close to $88 a barrel on Friday.
The horrific events in Israel and Gaza are taking precedence over underlying fundamentals, according to Tamas Varga, an analyst with brokerage PVM Oil Associates Ltd.
As traders prepare themselves against the possibility of more crude price increases, the conflict has also sparked a frenzy of activity in the options market. For almost a month, trading bullish calls has surpassed trading bearish puts every single day.
However, even a spread in the war could not result in persistently higher pricing, according to a report by analysts at JPMorgan Chase & Co., including Natasha Kaneva. According to them, geopolitical threats have caused prices to increase by around $7.
Away from the fighting, the US Energy Department announced on Thursday that it continued to restock the Strategic Petroleum Reserve after a record depletion and that it sought to purchase up to 6 million barrels.
- Published By Team Nation Press News
