Category: Gold News
Why Crude Oil Prices Are Spiking Today
Oil prices hit their highest level since October as tensions in the Middle East escalated, with Israeli Prime Minister Benjamin Netanyahu saying that Israel will take an aggressive stance against Iran and its proxies.
“Those who harm us or plan to harm us, we will harm,” he said at a security cabinet meeting.
Brent crude, the international…
“Those who harm us or plan to harm us, we will harm,” he said at a security cabinet meeting.
the international benchmark, rose 1.5% to $90.65 per barrel. A widening Israel-Hamas war would endanger supplies of oil. Iran is one of the largest oil producers in the Middle East.
are up 18% this year because of the war, OPEC’s decision to cut production, and rising fuel demand.
The U.S.-Israel alliance may also be shifting. President Joe Biden told Netanyahu in a Thursday call that the U.S. needs Israel “to announce and implement a series of specific, concrete, and measurable steps to address civilian harm, humanitarian suffering, and the safety of aid workers,” according to the White House.
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“It feels like the most likely path in the Middle East is for continued escalation in the Arab-Israeli conflict, and we think oil prices have the potential to go even higher in the near-term despite the recent strength if the current bellicose momentum continues,” wrote Roth MKM analyst Leo Mariani.
Oil stocks fell late in the day, despite the rally in crude prices. The
Energy Select Sector SPDR fund
ended the day marginally lower, after hitting a record earlier. The stocks were reacting to a broad market selloff.
Write to Avi Salzman at avi.salzman@barrons.com
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