OIL PRICES UP AS FOCUS REMAINS ON MIDDLE EAST CONFLICT

Tue 06 February 2024:

Oil prices slightly increased in early trade on Tuesday as markets awaited more cues on supply amid the Middle East conflict.

The international benchmark crude Brent traded at $78.19 per barrel at 10.28 a.m. local time (0728 GMT), a 0.26% increase from the closing price of $77.99 a barrel in the previous trading session on Monday.

The American benchmark, West Texas Intermediate (WTI), traded at the same time at $72.97 per barrel, up 0.26% from Monday’s close of $72.78 per barrel.

Fears of the Middle East conflict spilling over to other countries to further disrupt supply routes supported price increases.

The US is conducting “self-defense strikes” against explosive uncrewed surface vehicles (USVs) in areas of Yemen controlled by the Houthi group.

The Houthis have been targeting cargo ships in the Red Sea owned or operated by Israeli companies transporting goods to and from Israel in retaliation against the Israeli onslaught on the Gaza Strip in place since Oct. 7.

The US had also begun airstrikes on Friday against the Quds Force of Iran’s Islamic Revolutionary Guard Corps (IRGC) and Iranian-backed militias in Iraq and Syria after a suicide drone attack killed three American troops in Jordan last month.

Investors are also focusing on US Secretary of State Antony Blinken’s visit to the Middle East.

Blinken arrived in Saudi Arabia on Monday as the first stop in his latest regional tour as part of efforts to instigate a cease-fire in the Gaza Strip.

His tour will continue until Feb. 8 and will also include Egypt, Qatar, Israel and the occupied West Bank.

-Source: AA

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