Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Wednesday, August 21, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

U.S. crude oil jumps more than 3% after Hamas political leader assassinated in Tehran

July 31, 2024
in News
Reading Time: 4 mins read
A A
U.S. crude oil jumps more than 3% after Hamas political leader assassinated in Tehran
0
SHARES
ShareShareShareShareShare

READ ALSO

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

Japan trade on deck, Wall Street rally pauses

U.S. crude oil jumps more than 3% after Hamas political leader assassinated in Tehran

U.S. crude oil futures jumped more than 3% on Wednesday after Hamas political leader Ismail Haniyeh was assassinated in Tehran, renewing fears that Middle East is teetering on the brink of a regional war.

Here are Wednesday’s energy prices:

  • West Texas Intermediate September contract: $77.28 per barrel, up $2.55, or 3.51%. Year to date, U.S. oil has gained 7.9%.
  • Brent September contract: $80.73 per barrel, up $2.10, or 2.67%. Year to date, the global benchmark is ahead 4.8%.
  • RBOB Gasoline August contract: $2.44 per gallon, up 5 cents, or 2.41%. Year to date, gasoline is up 16.2%.
  • Natural Gas September contract: $2.08 per thousand cubic feet, up 4 cents, or 2.07%. Year to date, gas is down 17%

Iran’s paramilitary Revolutionary Guard accused Israel of assassinating Haniyeh at his residence in Tehran. Iran’s supreme leader Ayatollah Ali Khamenei said it is Iran’s duty to punish Israel for this action, according to a Google-translated report from the state-run Islamic Republic News Agency.

Haniyeh’s assassination casts even more uncertainty over a potential Gaza cease-fire deal between Israel and Hamas. Haniyeh was a senior negotiator in the talks.

CNBC has reached out for comment to the Israeli Ministry of Foreign Affairs and Prime Minister’s Office.

Oil gained ground amid exacerbated hostilities in the oil-rich Middle East region, where Israel has been fighting Iran-backed Palestinian militant group Hamas since the latter’s terror attack in October.

Israel’s decision to carry out a retaliatory campaign in the Gaza Strip has since broadened the conflict, with Israel trading fire with other Iran-supported factions, such as Lebanon’s Hezbollah and Yemen’s Houthi.

Oil markets have so far absorbed the shocks of inching escalations in the Middle East, which were intermittently exacerbated by trade disruptions caused by Yemeni maritime attacks and by episodes of direct hostilities between Israel and Iran or Hezbollah. 

Clay Seigle, director of the global oil service at Rapidan Energy Group, told CNBC’s Emily Tan that oil traders have been “mispricing” the geopolitical risks in the Middle East, with the market left “a bit sanguine” by an expected disruption of barrels in the wake of Russia’s war in Ukraine that “never materialized,” along with a 10-month simmering war in the Gaza enclave.

Analyst discusses outlook for oil markets

“But now we’re moving into a phase of deterioration into the Middle East that we believe is going to capture oil traders’ attention and get them to return some material risk premium into the price of Brent. At least $5 [per barrel] to start, even before we see a potential physical supply disruption,” he said.

“The events that we’ve seen over the past 1-3 days have marked a fairly sharp deterioration that has the potential to break us out of this phase of contained escalation between the sides that we’ve seen really since Oct. 7 and take us into new territory for oil and gas markets,” he added. 

Other analysts questioned the potential of the latest escalation to shore up oil prices in the long term.

“I believe the fact that the assassination took place on Iranian soil has raised the stake and the danger of actual supply disruption, hence the rally in oil,” Tamas Varga, an oil analyst at PVM Associates, told CNBC.

“Nonetheless, I believe, its supportive impact will not last unless further escalation unambiguously threatens physical output from the region.”

UBS analyst Giovanni Staunovo echoed the sentiment.

“Concerns of an escalation of tensions in the Middle East have lifted crude prices. That said, geopolitical risk premia in oil only tend to last if there are supply disruptions. The reaction of oil prices have been modest, as so far there have been no supply disruptions,” he told CNBC.

The price movement comes just as a technical committee of the influential OPEC+ — summing the Organization of the Petroleum Exporting Countries and its allies — is set to meet on Thursday and assess compliance with individual members’ production quotas. While this Joint Ministerial Monitoring Committee does not have the authority to tweak the coalition’s formal output strategy, it can call a full-fledged ministerial meeting to do so, if market circumstances warrant the step.

Quota compliance has come under the group’s scrutiny, with the OPEC Secretariat on July 24 noting it had been informed by OPEC+ members Iraq, Kazakhstan and Russia on their plans to make up the volumes they had overproduced in the first half of the year with additional output cuts over the course of the period between July 2024 and September 2025.

The events also come on the week of earning reports from European oil majors. Shell is due to post on Thursday, after BP on Tuesday raised its dividend and posted second-quarter profit above expectations.

Credit: Source link

ShareTweetSendSharePin
Previous Post

Has Zach Wilson already lost the Broncos’ QB competition?

Next Post

Save 15 percent on Disney+ streaming gift cards today only

Related Posts

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
News

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

August 21, 2024
Japan trade on deck, Wall Street rally pauses
News

Japan trade on deck, Wall Street rally pauses

August 21, 2024
GMC targets electric truck leadership against Tesla, Ford, Rivian
News

GMC targets electric truck leadership against Tesla, Ford, Rivian

August 21, 2024
Brits snap up lower mortgages as BOE cut boosts market
News

Brits snap up lower mortgages as BOE cut boosts market

August 20, 2024
Eli Lilly weight loss drug cuts risk of developing diabetes in trial
News

Eli Lilly weight loss drug cuts risk of developing diabetes in trial

August 20, 2024
Who is Mike Lynch, UK tech entrepreneur missing in superyacht sinking?
News

Who is Mike Lynch, UK tech entrepreneur missing in superyacht sinking?

August 20, 2024
Next Post
Save 15 percent on Disney+ streaming gift cards today only

Save 15 percent on Disney+ streaming gift cards today only

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

Travel is too expensive now — travel demand falls under cost concerns

Travel is too expensive now — travel demand falls under cost concerns

August 20, 2024
Consensus raises .5M for AI research engine for scientific papers

Consensus raises $11.5M for AI research engine for scientific papers

August 20, 2024
Mets’ Christian Scott set to take next step in rehab process

Mets’ Christian Scott set to take next step in rehab process

August 18, 2024
Simone Biles’ mom brutally trolls Snoop Dogg during awkward Olympics interview

Simone Biles’ mom brutally trolls Snoop Dogg during awkward Olympics interview

July 29, 2024
CrowdStrike-Microsoft outage cost the airline 0 million

CrowdStrike-Microsoft outage cost the airline $500 million

July 31, 2024
The Google Pixel 9, the Pixel 9 Pro Fold and everything announced at the Made by Google event

The Google Pixel 9, the Pixel 9 Pro Fold and everything announced at the Made by Google event

August 13, 2024
American Airlines’ flight attendant contract would double pay for some

American Airlines’ flight attendant contract would double pay for some

July 26, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
  • The EU wants no corner of the digital sphere left untouched, warning X and AI could be next
  • Kevin James recreates viral video in electric Mets moment
  • Japan trade on deck, Wall Street rally pauses

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In