American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Oil prices rise on renewed supply tensions; Brent may struggle to breach $75/barrel

by admin November 30, 2024
November 30, 2024
Oil prices rise on renewed supply tensions; Brent may struggle to breach $75/barrel

Oil was volatile on Friday as prices rose on renewed concerns over supply risks after Israel and Hezbollah traded accusations of ceasefire violations.

At the time of writing, the price of West Texas Intermediate crude oil was $69.28 per barrel, up 0.8% from the previous close.

Brent crude on the Intercontinental Exchange was $72.99 per barrel, up 0.3%. 

Israel and Lebanon-based Hezbollah had agreed to a ceasefire deal on Wednesday, which was brokered by US President Joe Biden. 

The deal was intended to allow people in both Israel and Lebanon to return to their homes in the border regions, which have been plagued by 14 months of fighting. 

According to a Reuters report, Israel’s military said the ceasefire was violated when it suspected suspects, some in vehicles, arrived at several locations in the southern zone. 

The Middle East is home to more than half of the world’s oil reserves. Escalating tensions could impact supply in the region, boosting oil prices. 

However, since the conflict between Israel and Hamas broke out last year, supplies have not been affected from the region so far. 

Focus on geopolitics

Meanwhile, on Thursday, Russia targeted Ukrainian energy facilities for the second time in November. 

A retaliation by Ukraine could affect Russian oil supply. Russia remains one of the top oil exporters despite tough sanctions on its shipments by western powers. 

Iran told a United Nations nuclear watchdog that it would install more than 6,000 additional uranium-enriching centrifuges at its enrichment plants, Reuters reported. 

Analysts at Goldman Sachs have estimated that Iranian oil supply could drop by 1 million barrels per day next year if the US and other western powers tighten sanction enforcements.

US President-elect Donald Trump is expected to tighten enforcement of sanctions on Iran’s oil exports.

Under Biden, the US administration did not pursue tighter enforcements, which led to a spike in Iranian oil exports. 

Most of Iran’s oil exports are gobbled by China. According to Vortexa, oil exports to China have risen 30% on a year-on-year basis till the first 10 months this year.  

OPEC+ postpones meeting

The oil market was left in an uncertain state after the Organization of the Petroleum Exporting Countries and allies moved their Sunday meeting to December 5. 

OPEC said in an official release that the meeting has been rescheduled as several ministers will be attending the 45th Gulf Summit in Kuwait City in Kuwait.

The meeting will be held via video conference, OPEC said. 

Arslan Ali, derivatives analyst at FXempire.com, said in a report:

Market sentiment was further clouded by OPEC+ delaying its key policy meeting to December 5, leaving investors uncertain about future output strategies.

Thin trading volumes, attributed to the US.

Thanksgiving holiday, underscored a cautious market tone.

The cartel was expected to take a decision on its oil output policy from January as the steep voluntary cuts of 2.2 million barrels per day are set to expire at the end of December. 

OPEC was scheduled to increase output by 180,000 barrels per day from December and unwind some of its voluntary production cuts.

But, lower oil prices and concerns over oversupply prompted them to extend the cuts till December-end. 

Azerbaijan Energy Minister Parviz Shahbazov confirmed as much, stating that “OPEC+ could or couldn’t discuss oil output rollover at its next meeting. It is difficult to prejudge”

Brent crude forecast

The support for Brent crude oil prices is at $70 per barrel. On the upside, a long term resistance remained at $80 a barrel. 

Source: TradingView

“That’s assuming that we would even get anywhere near there,” Christopher Lewis, analyst at FXempire, said in a note. 

“I think the $75 level is probably going to be difficult to break above. And at this point in time, I think that’s your first real challenge,” he added.

If you’re a short-term trader, this might be the market for you if you like trading range-bound markets.

There’s really nothing to get the markets moving at the moment, but it is worth noting that the support in both grades (Brent and WTI) of crude oil go back a couple of years.

The post Oil prices rise on renewed supply tensions; Brent may struggle to breach $75/barrel appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Brazil’s tax exemption strategy fuels currency decline and market turmoil
next post
Mark Mobius’ 2025 investment advice: buy US tech cos focussed on emerging markets

Related Posts

Silver poised to hit $35/oz as gold rallies...

March 20, 2025

Australian state appoints official for ‘Men’s Behavior Change’...

June 1, 2024

Is Russia’s war economy on the brink of...

December 5, 2024

More than 800 Western officials sign scathing criticism...

February 3, 2024

Geopolitics more crucial than interest rates in Japan...

September 24, 2024

Taylor Swift endorses Kamala Harris: Can the singer’s...

September 11, 2024

PLTR stock surges, TSLA slips as US stock...

February 5, 2025

Netanyahu authorizes negotiators to enter detailed talks for...

July 5, 2024

They flew to New Caledonia for a romantic...

May 24, 2024

Zelensky issues fresh weapons plea after 7 killed...

July 2, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved