Oil prices stabilise after Golan Heights attack
Istanbul, July 30 (Hibya) - Oil prices were stable on Monday as fears of a widening conflict in the Middle East after a rocket strike in the Israeli-occupied Golan Heights put a floor under last week’s price losses.
Brent crude futures traded at around $81 - $82 a barrel and U.S. West Texas Intermediate (WTI) crude futures at around $77 - $78. The Brent and WTI benchmarks lost 1.8 percent and 3.7 percent, respectively, last week due to sagging Chinese demand and hopes of a Gaza ceasefire agreement.
On Sunday, Israel’s security cabinet authorised Prime Minister Benjamin Netanyahu’s government to decide on the “manner and timing” of a response to the attack that killed 12 teenagers and children.
Israel vowed retaliation in Lebanon against Iran-backed Hezbollah, which denied responsibility for the attack. Israeli jets hit targets in southern Lebanon on Sunday.
The tensions have spread to several fronts and are in danger of spilling into a wider regional conflict, sparking investor concerns about the potential impact on crude output from the world’s largest oil-producing region.
Data released this month showed that China’s total fuel oil imports dropped 11 percent in the first half of 2024, raising concerns about the wider demand outlook in the world’s biggest crude importer.
Prices also moved lower on Friday on news that the huge Dangote oil refinery in Nigeria is reselling U.S. and Nigerian crude cargoes after technical problems at the refinery.
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