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Oil price stability after the attack on the Golan Heights

Published by: 31.07.2024 10:20:42

Oil prices steadied on Monday after a rocket attack on the Israeli-occupied Golan Heights raised fears of a widening conflict in the Middle East. These concerns halted last week's decline in prices.


Current situation on the oil market

 

Brent crude futures rose 7 cents, or 0.09%, to $81.20 a barrel. U.S. West Texas Intermediate (WTI) crude futures were up 1 cent, or 0.01%, at $77.17 a barrel. Last week, Brent and WTI lost 1.8% and 3.7%, respectively, on falling demand in China and hopes of a ceasefire in Gaza.


Tensions in the Middle East

 

Israel's security cabinet has tasked Prime Minister Benjamin Netanyahu's government with deciding how to respond to the attack, which killed 12 children and teenagers. Israel has vowed retaliation against Hezbollah in Lebanon, which has denied responsibility for the attack. Israeli fighter jets hit targets in southern Lebanon.

Hezbollah said it attacked an Israeli anti-aircraft post in the Golan Heights with multiple drones, sparking further clashes and raising the risk of a wider regional conflict.


Global oil market

 

Tensions in the Middle East led to fresh oil purchases, but growth was limited by concerns about weakening demand in China. China's fuel oil imports fell 11% in the first half of 2024, raising concerns about the broader outlook for demand in the world's biggest oil importer.

 

Other factors affecting oil prices

 

Oil prices also fell due to technical problems at the Dangote refinery in Nigeria, which resells shipments of US and Nigerian crude. Markets are also monitoring the situation in Venezuela, where President Nicolás Maduro won a third mandate, which raised US concerns about the authenticity of the election results.

 

Recommendations for investors

 

  1. Monitor Political Events: The situation in the Middle East and other geopolitical factors can significantly affect oil prices. Stay informed about current events.

  2. Diversify your investments: Don't just rely on oil. Consider investing in other sectors that can grow independently of oil prices.

  3. Watch demand in China: China is the world's largest oil importer. Its economic situation and demand can significantly affect the global oil market.

  4. Technical Analysis: Assess technical issues at key refineries such as Dangote in Nigeria that may affect the supply of oil in the market.

  5. Sanctions Policy: Monitor US sanctions policy against countries like Venezuela. Changes in sanctions may affect global oil supply and prices.

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