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Oil prices up more than 2%
Oil prices rose sharply on Monday, driven higher by escalating tensions in the Middle East, the start of hurricane season and expectations of strong demand for fuel during the holiday period.
The price of a barrel of North Sea Brent, for delivery in September, will have increased by 1.88%, reaching 86.60 dollars.
At the same time, the barrel of West Texas Intermediate (WTI), for delivery in August, recorded a rise of 2.25% to 83.38 dollars.
Several bullish factors, Lebanon worries
Analysts believe two major factors are pushing oil prices higher: escalating tensions between Israel and Hezbollah and a strong Chinese manufacturing PMI.
Responding to a firing of 20 rockets into its territory by Palestinian fighters, Israel struck the southern Gaza Strip on Monday.
But now it is the potential extension of the conflict to Lebanon that worries investors. After a multiplication of attacks on both sides of the Israeli-Lebanese border, a conflict between Israel and the Lebanese Hezbollah is particularly feared.
Another bullish element: the hurricane season in the United States and the Caribbean has started early and violently, raising fears of a possible impact on production and refining equipment in the Gulf of Mexico.
On Monday, Hurricane Beryl hit the Caribbean island of Grenada. Winds described as “devastating” and reaching speeds of up to 240 km/h were recorded by the US National Hurricane Center (NHC).
Some analysts believe that this “monster” storm, observed at the end of June, augurs a worrying picture for the rest of the season. They therefore anticipate a rise in the price of a barrel.
Sources : AFP
To sum up
Oil prices rose sharply on Monday, reaching a level not seen in nearly two months.
They will have been driven upwards by the escalation of tensions in the Middle East, the start of the hurricane season and by forecasts of significant demand for fuel during this holiday period.
