Oil prices remained high on April 3, 2024, with Brent crude trading near $90 a barrel. This comes as President Joe Biden criticized Israel for not protecting civilians following the death of seven aid workers in the Gaza Strip. A report estimated that Israel's military offensive in the region has destroyed about $18.5 billion in infrastructure [a6965489].
In other news, Taiwan experienced an earthquake, causing concerns about its impact on the region [a6965489]. Meanwhile, Tesla reported strong sales, contributing to positive market sentiment [a6965489].
These developments add to the ongoing tensions in the Middle East and their potential impact on oil prices. Investors will continue to monitor the situation closely for any further escalation or disruptions to the global oil supply [e8144f6e].
Oil prices ticked up after Israel struck Rafah in Gaza while negotiations for a ceasefire with Hamas continued without resolution. Brent crude futures were up 23 cents, or 0.28%, at $83.56 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 24 cents, or 0.31%, to $78.72 a barrel. The lack of settlement between the parties in the now seven-month long conflict has supported oil prices, as investors worry regional escalation of the war will disrupt Middle Eastern crude supplies. Saudi Arabia's move to raise the official selling prices for its crude sold to Asia, Northwest Europe, and the Mediterranean in June also supported prices, signaling expectations of strong demand this summer [686c7ea3].
Oil prices rose on Friday, continuing upwards trend on the signs of improving economy in China and as negotiations to halt hostilities in the stand-off between Israel and Hamas yielded no results. China's exports and imports returned to growth in April after contracting in the previous month. Ongoing signs of strength in demand in China should see commodity market remain well supported. In the U.S., there is considerable uncertainty about where inflation will head in coming months. Israeli forces bombarded areas of Rafah on Thursday, Palestinian residents said, as Prime Minister Benjamin Netanyahu dismissed U.S. President Joe Biden's threat to withhold weapons from Israel if it assaults the southern Gaza city. A senior Israeli official said late on Thursday that the latest round of indirect negotiations in Cairo to halt hostilities in Gaza had ended and Israel would proceed with its operation in Rafah and other parts of the Gaza Strip as planned. [5591a6f5].
Oil prices rose slightly in Asian trade on Monday as traders sought more information on rescue attempts for Iran’s President after a helicopter crash. Crude prices were sitting on some gains from last week, as the prospect of U.S. interest rate cuts and improving demand in major importer China sparked increased appetite for crude. Brent oil futures expiring in July rose 0.3% to $84.19 a barrel, while West Texas Intermediate crude futures rose 0.2% to $79.70 a barrel. A helicopter carrying Iranian President Ebrahim Raisi and his foreign minister crashed in mountainous terrain due to bad weather conditions over the weekend. Rescue efforts were launched, while Reuters reported some Iranian officials stating that Raisi’s life was potentially at risk. Raisi was seen as a contender to become Iran’s next supreme leader. The helicopter crash and uncertainty over Raisi’s fate come amid simmering tensions in the Middle East, after Israel and Iran engaged in strikes against each other earlier this year. Oil markets remained cautious over a slew of upcoming cues on U.S. interest rates and the economy this week. Reports of the Federal Reserve’s late-April meeting are due this week, as are addresses from a string of Fed officials. Markets were also on edge before a meeting of the Organization of Petroleum Exporting Countries and allies (OPEC+), which is scheduled for June 1. [f149ddd7]