SINGAPORE: Simmering tensions in the Middle East and growing supply risks caused oil prices to fall in choppy trade on Thursday, seemingly ending a two-session winning run of roughly 3 percent, according to Reuters.
By 09:50 a.m. Saudi time, Brent crude futures had dropped 25 cents, or 0.3 percent, to $78.08 a barrel, while US West Texas Intermediate crude had dropped 13 cents, or 0.3 percent, to $75.10. In early trade on Thursday, both benchmarks had bounced back from near-2024 lows before going negative.
The death of senior members of the militant groups Hamas and Hezbollah last week raised the possibility of Iran launching retaliatory strikes against Israel, adding to the volatility caused by the potential for Middle East supply disruptions.
Though tankers have been forced to take longer routes due to attacks on ships in the Red Sea, supply has not been impacted thus far.
According to a note from ANZ Research, the market has been tense as it waits for Iran to respond.In a statement, Libya’s National Oil Corp. announced that it had placed its Sharara oilfield under force majeure as of Tuesday. The statement also stated that the company had gradually decreased the field’s production due to protests.
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