2024-04-10T19:44:47+00:00
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/ Reuters reported, this evening, Wednesday, that oil prices rose in global markets after three sons of the head of the political bureau of the Palestinian Islamic Resistance Movement “Hamas,” Ismail Haniyeh, were killed in an Israeli air strike.
According to Reuters, by 18:47 GMT, Brent crude futures rose 88 cents, equivalent to 1%, to $90.30 per barrel, and US West Texas Intermediate crude futures rose 81 cents, equivalent to 1%, to $86.04.
The prices of the two standard crude oils rose by about 1% as soon as news of the killing of Haniyeh’s sons came.
The Israeli army confirmed a strike in Gaza on Wednesday that killed three of Haniyeh’s sons, saying in a statement that they were all members of the movement’s military wing.
Hamas said on Tuesday that it was studying an Israeli proposal for a ceasefire, but the Israeli position was “intransigent” and did not meet any of the Palestinian demands.
“The oil market was and continues to be very reactive to the news coming out of Gaza,” said John Kilduff, partner at Again Capital in New York.
The continuation of the conflict would attract other countries, especially Iran, which supports Hamas. Iran is the third largest producer in the Organization of the Petroleum Exporting Countries (OPEC).
Oil prices had declined earlier in the session on Wednesday after US government data showed crude and fuel inventories rising more than expected as a result of weak demand and a decline in crude exports.
Crude inventories rose by 5.8 million barrels to 475.3 million in the week ending April 5, more than doubling the expectations of analysts polled by Reuters that they would rise by about 2.4 million barrels.
Gasoline stocks increased by 700 thousand barrels, and distillate stocks rose by 1.7 million barrels.
US Energy Information Administration data also showed a decline of about 2.1 million barrels per day in supplies of petroleum products, an indicator of fuel demand, and a decline of 2.7 million barrels per day in crude oil exports.
“The rise in crude oil prices this week had some impact amid hopes for a ceasefire in Gaza and rising US inventories,” said Tony Sycamore, market analyst at IG in Singapore.
The commander of the Iranian Revolutionary Guard’s naval force stated that Tehran may close the Strait of Hormuz if necessary. About a fifth of the world’s total oil consumption passes through the strait daily.
Separately, the US Energy Information Administration raised its forecast for US crude oil production by 280,000 barrels per day to 13.21 million barrels per day in 2024, a difference of 20,000 barrels per day from previous expectations.
The administration added that it expects Brent crude prices to average $88.55 per barrel in 2024, up from a previous forecast of $87 per barrel.
SEB analyst Bjarne Schildrup said, “In general, (the administration) reaffirmed the oil market’s expectations, with OPEC+ well controlling the market.”
Fitch lowered its outlook for China’s sovereign credit rating to negative on Wednesday, attributing this to risks threatening public finances.