🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Oil prices settle slightly higher as Middle East tensions simmer

Published 02/12/2024, 10:10 AM
Updated 02/13/2024, 04:20 AM
© Reuters.
LCO
-
CL
-
GPR
-

Investing.com-- Oil prices settled slightly Monday as a step-up in geopolitical tensions in Middle East supported bullish bets on energy. 

At 14:30 ET, West Texas Intermediate crude futures settled $0.10 higher at $76.92 per barrel, while  Brent oil futures expiring in April fell 0.2% to $82.00 a barrel. 

Middle East Tensions ratchet up as Israel prepares ground offensive of Rafa

Israel launched airstrikes over the weekend in preparation for a ground invasion of the southern Gaza city of Rafa, stoking further worries that Israel-Hamas war --  a key point of support for oil in recent months due in part to concerns that the conflict could cause disruptions in global oil supplies -- is set to escalate further. 

Middle East tensions have continued to support oil prices offsetting a recovery in U.S. production, which increased to record highs in February after cold weather-related disruptions in production.

But U.S. fuel supplies were tightened by several refiners remaining shut for maintenance. Gasoline futures had shot up nearly 9% in the prior week, although whether the trend would persist remained in doubt, given that U.S. fuel demand was also seen weakening in cold weather. 

OPEC, IEA reports; U.S. inflation on tap this week 

The Organization of the Petroleum Exporting Countries is set to release its monthly report on Tuesday, followed by the International Energy Agency on Thursday. Ahead of the monthly reported, Saudi Arabia’s Energy Minister, Abdulaziz bin Salman Al Saud, said Monday that OPEC remains prepared to adjust output policy as needed.

At the most recent meeting, OPEC and its allies, or OPEC+, decided to keep production levels unchanged and will decide in December whether to extend voluntary oil output cuts. 

Inflation data due Tuesday will also play a role in dominating market moves as it will likely filter into the Fed's thinking on monetary policy. Headline U.S. consumer price index is expected to have slowed marginally in January. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.