The price of oil rose due to events in Palestine amid fears of a shortage of global supplies
After the current events in Palestine, from the beginning of Operation “Al-Aqsa Flood” until the brutal bombing of the Gaza Strip, the energy market was greatly affected, as since the beginning of the events, the price of oil rose to reach more than $86 per barrel of West Texas Intermediate crude oil, and more than $90 per barrel of crude oil. Brent.
In this report, the Al-Fajr website follows up with you on the price of oil and its impact on current events in Palestine and the Middle East.
Events in Palestine and the rise in the price of oil in the Middle East
Although the oil sector in the occupying state and the Palestinian territories is relatively small, their combined production does not exceed 0.5% of global production. However, the region surrounding them, including Saudi Arabia, Iran and Iraq, i.e. the Middle East is the largest oil producer in the world, producing about a third of global production. Recent events in Palestine have led to fears that the ongoing Israeli escalation and bombing of the Gaza Strip will disrupt production in the region, which will lead to a shortage in global supplies and thus a global rise in the price of oil.
Other reasons for the rise in the price of oil in the world
There are reasons other than the current events in Palestine that lead to an increase in the price of oil in the world, such as: “The increasing global demand for oil: The global demand for oil continues to increase, due to the recovery of the global economy from the Corona pandemic. This has led to an increase in the price of oil recently.” Last.
Sanctions on Russia: The United States and its allies impose sanctions on Russia over its war in Ukraine. These sanctions have led to disruption of oil supplies from Russia.”
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The development of the price of oil since the beginning of the current events in Palestine
On October 7, 2023, that is, the day the “Al-Aqsa Flood” operation began, Brent crude oil recorded about $84.58 per barrel, while West Texas Intermediate crude oil recorded about $82.79 per barrel.
Then on October 9, 2023, the price of oil saw a rise of about 4 percent as benchmark Brent crude futures registered a 4.22 percent increase, reaching $88.15 per barrel. US West Texas Intermediate crude futures also rose by 4.33%, bringing the price of a barrel of US oil to about $86.38.
Oil price today
The price of a barrel of West Texas Intermediate crude oil recorded $85.70, and thus it rose by about 0.21 from the last closing.
The price of a barrel of Brent crude oil recorded $89.87, and thus it rose by about 0.21 from the last closing.
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