Oil Prices Rise 4% as Hamas Attacks Israel Killing and Wounding Thousands

Oil prices have risen as fighting between Israel and Palestinian militant movement Hamas continues for a third day. Global benchmark Brent rose 4.53% to $88.41 a barrel on Monday. US West Texas also recorded gains, climbing 4.69% to $88.67 a barrel.

The conflict between the two sides does not have a direct impact on oil prices because neither is a major oil producer. According to the US Energy Information Administration (EIA), the Palestinian side does not Produce any oil. On the other hand, EIA notes Israel has an estimated 14 million barrels of oil reserves and almost no crude oil production. Israel has two refineries and a combined capacity of 300,000 barrels per day, according to EIA data.

The conflict between Hamas and Israel will not affect oil prices.

Although the conflict may have some impact on oil prices, analysts do not believe there will be any lasting problems. Vandana Hari, CEO of Vanda Insights, predicted in an email to CNBC that there could be a “knee-jerk” rise in crude oil prices when markets open today.

Vivek Dhar, Commonwealth Bank’s director of mining and energy commodity research, also believes the conflict will not impact oil prices in the long run. According to Dhar, other market forces are more powerful. He where did it go,

“For this conflict to have a lasting and meaningful impact on oil markets, there must be a sustained reduction in oil supply or transportation. Otherwise, and as history has shown, positive oil price reactions are temporary and easily outweighed by other market forces.”

According to Iman Nasseri, managing director for the Middle East at Facts Global Energy (FGE), the conflict will have a limited impact on oil prices unless it expands into a regional war.

On Saturday, Hamas launched a surprise attack on Israel by sending rocket attacks from the Gaza Strip into Tel Aviv. During this episode, Hamas also carried out sea and land attacks. according to a Post Many civilians, including Israeli Prime Minister Benjamin Netanyahu, were either killed in their homes or abducted. In addition to consoling the bereaved families, the prime minister promised to “destroy Hamas’s capabilities” and assured citizens of victory. However, he said there are challenging days ahead as the war will be “tough” and “will take time”.

risk of higher prices

At the time of this writing, a report The Associated Press (AP) says the death toll on both sides has risen to more than 1,100, with at least 700 in Israel and more than 400 in Gaza. However, one Sunday Updates The Palestinian Health Ministry has reduced its number to 313.

While most predictions do not indicate any direct impact oil prices, there is still considerable risk. Henning Gloystein, director of energy, climate and resources at Eurasia Group, told CNBC that risks to regional growth remain. Gloystein believes supply problems are imminent if Iran is somehow influenced and involved in a war.

next

Commodities and Futures, market news, news

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.