This week, oil prices saw an upward trend, fueled by worries over supply amid rising geopolitical tensions.
The faltering peace talks between Israel and Hamas have notably influenced market sentiment.
In trading, Brent crude for May edged up by 2.00%, closing at $83.55 a barrel on the ICE.
Similarly, WTI for April experienced a 2.19% increase, reaching $79.97 a barrel on the New York Mercantile Exchange.
Throughout the week, Brent and WTI gained roughly 3.40% and 4.55%, respectively.
Recent actions by Israel, which led to significant civilian casualties in Gaza, have intensified these tensions.
U.S. President Joe Biden expressed doubts about an imminent ceasefire, marking a shift from earlier optimism.
His acknowledgment that the attack complicates peace efforts underscores the situation’s gravity.
OPEC+ considering extending their production cuts has also played a role in boosting oil prices.
TD Securities points out, however, that despite these short-term influences, the broader outlook remains uncertain.
Weak demand expectations and potential production increases challenge sustained growth.
Louis Navellier, from Navellier & Associates, highlights the potential for short-term price increases.
Oil Market Insights
He notes that U.S. seasonal demand could bolster the market. Yet, geopolitical strife might temporarily push Brent prices near $100 a barrel.
Despite this, Navellier anticipates a possible decline by year-end, influenced by the U.S. elections.
He speculates that a win for Donald Trump could depress prices due to his pro-drilling policies.
Bank of America analyst Paul Ciana expects oil to hover around recent highs as we enter the new month.
He believes any downturns will be less severe than those seen in February, suggesting a stabilizing market despite ongoing challenges.
These developments illustrate how geopolitical events and policy decisions can significantly impact global oil prices.
The market’s reaction reflects concerns over supply disruptions and the broader economic implications of these tensions.