2024-05-12 08:16:31
Oil prices are rising again. This is also due to the tense geopolitical situation.
Oil prices continued on Friday to their highs of the past few days. At midday, a barrel (159 liters) of North Sea Brent for delivery in July cost 84.43 US dollars (around 77 euros). That was 55 cents more than the evening before. The price for a barrel of the US variety West Texas Intermediate (WTI) for June delivery rose by 59 cents to 79.86 dollars (around 73 euros).
Oil prices have tended to fall in recent weeks. Recently, however, a weaker US dollar has provided momentum. The trigger was weak data from the US labor market, which gave hope for earlier interest rate cuts by the US Federal Reserve. Exchange rate effects play a major role in the oil market because the raw material is predominantly traded in US currency.
Tense geopolitics causes price increases
Price increases are also coming from geopolitics. There can currently be no talk of the hoped-for easing of tensions in the Gaza war. Rather, Israel does not want to be dissuaded from its war course by increasing pressure from its closest ally, the USA. The conflict is considered a major risk for the entire oil-rich Middle East.
According to Commerzbank’s assessment, the situation for oil prices remains fragile. “China’s crude oil imports in April were rather disappointing,” say the experts, explaining their assessment. They point to a local oversupply of crude oil products. Apparently the Chinese government has issued more export permits. “This would only mean that the excess supply would be exported, which could put further pressure on processing margins in Asia and therefore worldwide,” writes Commerzbank.