Breaking: Oil prices suddenly turn higher and register an increase of more than 2% By Investing.com

Investing.com – Prices turned higher during these trading sessions on Monday, as this comes after prices declined this morning, while the current increase comes as the market is waiting for an Israeli strike on Iran that could target its oil resources.

Oil prices rose last week amid fears that Iran’s oil facilities could be hit in retaliation for Tehran’s ballistic missile attack.

US West Texas Intermediate crude rose 9.09% last week, achieving its biggest weekly gain since March 2023. The global benchmark jumped 8.43%, achieving its biggest weekly advance since January 2023 .

During these hours of today’s trading, the November contract for West Texas Intermediate crude oil rose to $75.93 per barrel, an increase of $1.55, or 2.08%.

While the December contract for Brent crude rose to $79.47 per barrel, $1.42, or 1.82%.

President Joe Biden on Friday blocked Israel from striking Iran’s oil facilities, after prices jumped about 5% the previous day when the president suggested the United States was considering the possibility such an attack. Biden also said he is against Israel striking Iran’s nuclear facilities.

Compression will have very little effect on supply

Israel has recently expanded the scope of its war on and against Palestine, bombing Hezbollah targets in Lebanon and the Gaza Strip on Sunday ahead of the one-year anniversary of Hamas’ October 7 attacks on Israel. caused geopolitical tension in the region.

Last week, Iran launched a missile attack on Israel in response to Israel’s recent attacks on Hezbollah in Lebanon and its war in Gaza also against Hamas.

However, ANZ warned on Monday that although oil prices rose last week, the impact of the conflict on oil supplies would be relatively small.

“We see a direct attack on Iran’s oil facilities as the most likely response among Israel’s options,” the bank said.

The bank said: “We have seen a reduction in the impact of geopolitical events on oil supplies. for any supply shortages that arise.” about these risks.

OPEC+ will compensate for the shortage…but!

The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia and Kazakhstan, a group known as OPEC+, have millions of barrels of spare capacity since they cut production in recent years to to support prices amid weak global demand.

The group has enough oil reserves to compensate for any shortfall in Iranian supplies if Israel strikes its oil resources, but there will be problems if Iran responds by striking the resources of its Gulf neighbors, which according to analysts.

At their last meeting on October 2, OPEC + kept their oil production policy unchanged including a plan to start increasing production from December.

Philip Nova’s Sachdeva said in this context: “In addition to the uncertain news about the economic recovery in China, the largest importer of crude oil, the increase in production may ‘protect the market from supply disruptions and prevent an increase in oil prices.’