The rise in oil prices has stopped recently, as they declined in Asian trading on Tuesday after rising by more than seven percent in the previous three sessions, against the backdrop of concerns about supplies due to concerns about the expansion of the conflict in the Middle East region and the closure of Libyan oil fields.
By 01:54 GMT, US West Texas Intermediate crude futures dropped 36 cents, or 0.46 percent, to $77.06 per barrel, while Brent crude futures slid 32 cents, or 0.39 percent, to $81.11 per barrel.
This decline in oil markets comes after significant gains in the previous three sessions, supported by expectations of a cut in US interest rates, which may boost demand for fuel. In addition, the military attacks between Israel and Hezbollah in Lebanon over the weekend, which threaten to expand the conflict in the Middle East region, which is of great importance in oil production, contributed to strengthening concerns about supply disruption, especially with the closure of fields in Libya.
During that period, WTI rose 7.6 percent, and Brent rose seven percent.
“Markets remain in a state of tension as skirmishes escalate between Israel and Hezbollah,” ANZ analysts said in a note. “The risk of disruption to oil supplies has already become real after the government based in eastern Libya said it would... "It will stop all oil production and exports as the political conflict worsens."
This political dispute could affect production of up to 1.17 million barrels per day from the country, data from the latest Reuters survey of Organization of the Petroleum Exporting Countries production in July indicates.
The fact that Hezbollah was attempting to avenge the death of a top leader last month by intensifying the fight and exchanging heavy rocket fire with Israel also helped to support oil.
No comments:
Post a Comment