Oil rises in price amid geopolitical tensions in the Middle East

Oil rises in price amid geopolitical tensions in the Middle East

getty images

Benchmark oil prices are rising amid news of the death of US servicemen in Jordan as a result of drone attacks.

About this informs Enkorr.

It is noted that March Brent oil futures on London’s ICE Futures exchange are trading at $83.97 per barrel, which is $0.42 higher than the previous session’s close. The price of these contracts rose by $1.12 to $83.55 per barrel on January 26.

Also, WTI oil futures for March on electronic trading of the New York Mercantile Exchange increased by $0.36 and amounted to $78.37 per barrel. According to the results of the last session, they rose in price by 0.65 dollars – up to 78.01 dollars per barrel.

According to the results of last week, the price of Brent increased by 6.4%, the highest rate since mid-October, WTI – by 6.5%, the maximum since the beginning of September.

According to SIA Wealth Management analyst Colin Cheszynski, oil prices were supported last week by data that pointed to a drop in U.S. crude inventories and production. Expectations of new incentives in China were also an additional positive factor.

“Meanwhile, the U.S. military reported a drone attack on a U.S. base in northeastern Jordan near the border with Syria. Three soldiers were killed and 34 others were wounded. U.S. President Joe Biden said Sunday that Iranian-backed militias were responsible for this attack,” the message says.

Now a lot will depend on the reaction of the US and the actions of Iran, which can close the Strait of Hormuz, Tariq Zahir of Tyche Capital Advisors noted in an interview with MarketWatch.

We will remind:

The attack on the tanker of the company “Trafigura”, which transported Russian oil on January 26 called into question the safety of most legal transportation in the Red Sea. The price of oil has already increased by $2.

Original Source Link