10/4/2024–|Last updated: 10/4/202403:47 PM (Mecca time)
Oil prices jumped today, Friday, and are heading towards recording strong weekly gains of 10%, as investors assess the possibility of a supply disruption in the event of an expansion of the conflict in the Middle East region, despite the abundance of supplies in the global market.
Brent crude futures rose 1.4% to $78.71 per barrel by 11:20 GMT.
US West Texas Intermediate crude futures also increased 1.5%, to $74.8 per barrel. The two crude oil prices are heading for weekly gains of about 10%.
“Concerns are growing that Israel may target Iranian oil infrastructure as part of its response, which could lead to reciprocal responses and drag neighboring countries into the conflict,” said analyst Ashley Quilty of Panmure Gordon.
President Joe Biden said yesterday, Thursday, that the United States is considering whether to support Israeli strikes on Iranian oil facilities in response to the missile attack launched by Tehran on Israel, at a time when the Israeli army continued to bomb Beirut in continuation of its conflict with the Lebanese Hezbollah.
Biden’s comments contributed to a 5% rise in oil prices, at a time when Israel is considering its options for response after Iran launched its largest attacks on Israel on Tuesday.
However, supply concerns remained limited given the availability of excess production capacity in the Organization of the Petroleum Exporting Countries (OPEC) and the fact that global crude oil supplies have not yet been affected by the turmoil in the Middle East.
The eastern-based Libyan government and the Tripoli-based National Oil Corporation announced yesterday, Thursday, the reopening of all oil fields and export ports after resolving the dispute over the presidency of the Central Bank, ending a crisis that led to a severe reduction in oil production.
This allows the country to increase its production levels back to about 1.2 million barrels per day.
