Oil Prices Rise Amid Escalation of Conflict in the Middle East.

Oil prices continue to rise due to the escalation of the conflict in the Middle East. As a result of increased Israeli attacks on forces supported by Iran, pressure on oil producers' supplies is growing.

Brent oil prices rose by 51 cents, or 0.71%, to $72.49 per barrel, for the November contract. The December delivery contract also increased by 50 cents, or 0.7%, to $72.04.

West Texas Intermediate oil prices rose by 43 cents, or 0.63%, to $68.61 per barrel.

Last week, oil prices fell due to demand concerns after insufficient fiscal stimulus from China. However, this Time, prices are supported by the potential for conflict in the Middle East, where Israel has increased attacks on militants supported by Iran.

While oversupply remains a key issue for oil markets, there is a general concern that the conflict in the Middle East could lead to supply restrictions from key production regions. The growing crisis could impact oil prices, noted market analyst Priyanka Sachdeva.

Oil prices will also depend on supply and demand dynamics. The expansion of the conflict in the Middle East could affect prices. In particular, analyst Tony Sycamore emphasized that given the end of voluntary OPEC+ supply cuts, West Texas Intermediate oil prices might test the 2021 low range of $61 to $62 per barrel.

It is also important to consider the electrification and decarbonization of the transportation sector, as these processes could affect fuel demand, added Sycamore.

Source: enkorr