The price of a barrel of Brent oil rose 3.7% this Friday, to more than $89, after Israel gave the population 24 hours to leave Gaza, according to market data experts.
Specifically, at 11:00 a.m. in Lisbon, Brent, the benchmark oil in Europe, was trading at $89.2, 3.72% more than at the end of the session on Thursday.
The benchmark oil in the United States, West Texas Intermediate (WTI), was trading at $86.14, an increase of 3.9% compared to Thursday.
Banca March highlighted in a report that the price of oil, after falling 11% last week, managed to recover part of what was lost due to the war in the Middle East, since “the tensions in the crude oil market were again present before rumors about the involvement of Iran, one of the world’s main producers, in the attack on Israel.”
According to an analysis by Swiss investment bank Julius Baer, carried out by Next Generation Economics and Research director Norbert Rücker, “the oil market feels different after the outbreak of the tragic conflict in Israel over the weekend.”
Due to the conflict, “fears of an escalation – war – in the Middle East and disruptions in oil supplies have rapidly increased”, with the possibility of a new shock to prices, although Rücker considers this scenario to be “very unlikely.” “.
In his opinion, “the conflict seems to evolve according to the usual geopolitical manual”, since the conflict “temporarily increases prices until uncertainty decreases again and the oil market returns to its previous state.”
For this expert, “there may be some geopolitical consequences – due to the war – but so far these uncertainties do not change our opinions and projections. We expect oil prices to drop next year.”
Source: TSF
