Brent Crude Futures for November delivery rose 16 cents, or 0.22%, to $72.14 a barrel by 0043 GMT. That contract expires on Monday and the most active contract for December delivery gained 10 cents, or 0.14%, to $71.64.
US West Texas Intermediate Crude oil futures added 8 cents, or 0.12%, to $68.26 a barrel.
Last week, Brent fell about 3%, while WTI fell about 5% as concerns about demand rose after fiscal stimulus from China, the world’s second-largest economy and the main oil importer, failed to reassure market confidence.
However, prices on Monday were supported by the possibility of a widening conflict in the Middle East involving Iran, a key producer and member of the Organization of the Petroleum Exporting Countries.OPEC), after Israel increased its attacks against militant groups Hezbollah and the Houthis that Iran supports.
“The recent escalation of attacks in the Middle East is increasing the likelihood that Iran will be directly drawn into the conflict, posing a significant risk around supply disruptions at the OPEC producer,” ANZ Research said in a note. . Israel said it bombed Houthi targets in Yemen on Sunday, widening its confrontation with Iran’s allies two days after killing Hezbollah leader Sayyed Hassan Nasrallah in an escalation of the conflict in Lebanon. U.S. Defense Secretary Lloyd Austin authorized the military to bolster its presence in the Middle East, and the Pentagon said Sunday that if Iran, its partners or proxies attack U.S. personnel or interests, Washington “will take all necessary measures to defend our people.”
Later on Monday, markets will be waiting to hear from Federal Reserve Chair Jerome Powell for clues on the speed of the Fed’s monetary policy easing, and seven other Fed policymakers will speak this week , adds the ANZ note.
Still, prices remain under pressure as OPEC and its allies, known as OPEC+, plan to increase production by 180,000 barrels per day in December and Libya’s oil exports are also expected to return.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.