Geopolitical Risks Drive Oil Prices Up: London Update

2023-10-17 14:30:00
London: Oil was up slightly on Tuesday, supported by fears of an expansion of the conflict between Israel and Hamas and the risks this would represent for supplies. Around 11:20 GMT (1:20 p.m. CET), the barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. from the North Sea for delivery in December, rose 0.46% to 90.15 dollars.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for delivery in November, took 0.36% to 87.08 dollars.

“Concerns about supply disruptions in a context of possible worsening of the conflict in the Middle East drives up the price of oil“, summarizes Carsten Fritsch, Commerzbank analyst.

???????? If the Levant is not an oil-producing region, investors fear in particular that the conflict will extend to Iran, a major producer and member of the Organization of the Petroleum Exporting Countries (OPEC).

They note that stricter enforcement of US oil sanctions against Iran, a long-time supporter of the Islamist movement Hamas, would result in less supply on the market from Tehran.

???????? Iranian leaders, however, claim not to be involved in the attack launched on October 7 by Hamas against Israel.

???????? The United States also announced last week the first sanctions for non-compliance with the Russian oil price cap, targeting two companies that allegedly transported Russian oil at a rate higher than $60 per barrel.

???????? The gains were, however, capped by the prospect of a possible larger offer from the Venezuela, country with the largest proven oil reserves in the worldindicates Carsten Fritsch, Commerzbank.

???????? Several media outlets reported Monday that the governments of the United States and Venezuela reached an agreement in which Washington would ease sanctions against the Venezuelan oil sector, in exchange for the organization of an internationally controlled presidential election next year , and which should be revealed urgently.

In 2019, Washington severed diplomatic relations and imposed an oil embargo, aiming to oust Nicolas Maduro from power after the controversial 2018 elections.

???? On the European natural gas side, the Dutch TTF futures contract, considered the European benchmark, contracted by 3.45%, moving to 46.94 euros per megawatt hour (MWh), after having touched a plus at the end of last week. high since February.