Oil prices rise after Israeli strike on Beirut’s south bank

rose Oil prices After Israel said its army hit Hezbollah’s headquarters in southern Beirut, worsening tensions in the Middle East.

The West Texas Intermediate crude price rose about 1% to settle above the $68 per barrel level, while the Brent crude price rose to settle near the $72 per barrel level. However, both benchmarks suffered weekly losses amid concerns about a possible increase in supplies from Libya and Saudi Arabia.

The attacks came after Israel vowed to continue bombing Hezbollah targets in Lebanon indefinitely, undermining efforts to secure a truce that could reduce the risk of regional war. On the other hand, the Iranian embassy in Beirut said that the Israeli strikes on the south bank of the Lebanese capital on Friday were a “dangerous escalation that will change the rules of the game,” according to a post on the “X” website.

The increase helped soften the impact of a report saying Saudi Arabia is committed to increasing production. On the other hand, the rival Libyan parties agreed this week to name a new governor for the Central Bank, in a step towards resolving the conflict that led to a decline in oil production.

“Oil prices are trying to stabilize as the market digests the return of Libyan supplies, and expectations of an OPEC+ supply increase in December,” said Rebecca Babin, senior energy trader at CIBC Private Wealth.

Seasonal decline in oil prices

Oil prices are headed for a seasonal decline amid OPEC+ plans to ease voluntary restrictions on supply, as well as the optimistic economic outlook for China, the largest importer. The Asian country unveiled a large number of monetary and fiscal stimulus measures this week, which lifted stock prices as well as some products, but their effectiveness remains uncertain.

“The market has largely ignored China’s stimulus measures and is focusing more on the direct impact of increased supply,” said Babin “The increase in demand from these stimulus efforts may take longer to come true.”

Price fluctuations pushed the WTI volatility index higher. Options markets are now anticipating lower risks for oil futures, with the price for bearish puts – which benefit from falling prices – over supportive bets increasing in recent days. ‘ gone.

Meanwhile, Tropical Storm Helen caused dangerous rainfall and flooding across the southern United States, killing at least four people and knocking out power to nearly 4 million customers. It should be noted that approximately 24% of oil production in the Gulf of Mexico has been shut down, according to the Office of Safety and Environmental Enforcement.