01.08.2024. / 12:20
WASHINGTON – Oil prices rose nearly 3 percent on Wednesday as investors worried the conflict in the Middle East could widen following the killing of the leader of Hamas in Iran and a sharp drop in US crude stockpiles.
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The prices of September Brent benchmark oil contracts rose by $2.09, or 2.66 percent, to $80.72 per barrel. The more active contract for October rose $2.77 to $80.84. American WTI crude oil rose by $3.18, or 4.26 percent, to $77.91 per barrel, which is its biggest daily gain since October 2023, reports Reuters.
Brent crude ended July with a monthly price decline of nearly seven percent, while WTI crude fell by nearly four percent during the month. US crude inventories fell by 3.4 million barrels last week, government data showed, more than triple the 1.1 million barrels analysts had expected in a Reuters poll. Inventories fell for a fifth straight Sunday, the longest losing streak since January 2021.
Tensions in the Middle East region escalated overnight following news that Hamas leader Ismail Haniya had been killed in Iran. This came a day after the Israeli government said it had killed a top Hezbollah commander in an air strike on Beirut in retaliation for Saturday’s rocket attack on Israel. Separately, the US also launched an attack in Iraq in the latest conflict in the region.
The drop in the US dollar index by 0.4 percent also supported the rise in prices. A weaker dollar can increase demand for oil by making dollar-denominated commodities cheaper for holders of other currencies. Concerns about fuel demand in China, the world’s largest crude oil importer, have also increased. Ministers of the OPEC+ countries will hold an online meeting on Thursday. Biznis.rs
Source: www.capital.ba
