Oil on the rise, driven by geopolitical tensions

The price of a barrel of Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. of the North Sea for delivery in January, of which it was the first day as a reference contract, increased by 0,40%has 73,16 dollars.

Its American equivalent, the barrel of West Texas Intermediate (WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy.), for delivery in December, won 0,33% has 69,49 dollars.

Earlier, Brent BRENT Brent, or North Sea crude, is a variation of crude oil serving as a benchmark in Europe, listed on the InterContinentalExchange (ICE), a stock exchange specializing in energy trading. It became the first international standard for setting oil prices. and WTI WTI West Texas Intermediate (WTI), also called Texas Light Sweet, is a variation of crude oil that serves as a standard in setting the price of crude and as a raw material for oil futures contracts with the Nymex (New York Mercantile Exchange). ), the stock exchange specializing in energy. have respectively reached 74,94 dollars et 71,45 dollars.

Speakers reacted to Iran's warning against Israel on Thursday, with a top adviser to the supreme leader saying the country would respond “brutal” to the Israeli attack carried out on Saturday against its military installations, according to local media.

According to the American media Axios, which relies on a source from “Israeli intelligence“, these reprisals would start from “Iraqi territory“.

The risk that Iraq, a major oil producer, would be drawn into the conflict contributed to the upward movement in black gold prices.

Iraq produced on average 4.26 million barrels of crude per day in September, according to figures from the International Energy Agency (IEA).

In addition, the country has 145 billion barrels of proven oil reserves, according to the US Energy Information Administration (EIA).

Oil”soared when the information came out, but (…) since we haven't heard anything new since, the markets are reversing their bets“, commented to AFP Phil Flynn, of Price Futures Group.

The prospects of a postponement of the production increase of eight members of the OPEC + alliance also had an influence on prices, according to the analyst.

The Organization of the Petroleum Exporting Countries (OPEC) and their allies in the OPEC+ agreement had decided to gradually lift certain production restrictions from the beginning of December.

“If OPEC decides, as rumor has it, to delay the cuts for a month or two, the market will suddenly be much tighter“, a souligné M. Flynn.

The upward movement in black gold prices is, however, weighed down by the uncertainties linked to the American election on November 5, which is pushing stakeholders to exercise restraint.

“Going by the headlines, prices are expected to be much higher…but we don't know if there will be a landslide or a contested election, all these things keep people in suspense“, said Phil Flynn.

(c) AFP

Commenter Oil on the rise, driven by geopolitical tensions