Oil rises 3% to 1-week high as Israel-Hamas war raises supply concerns; Brent settles at $90/bbl
₹7,153 per bbl, having swung between ₹6,932 and ₹7,154 per bbl during the session so far, against a previous close of ₹6,945 per barrel. Also Read: Crude oil deficit to high inflation: How can the Israel-Hamas war impact Indian economy? — Explained -Israeli air and ground forces were stepping up operations in the Gaza Strip amid reports of heavy bombing of the besieged enclave. Several countries, including many Arab states, have urged Israel to delay a planned ground invasion that would multiply civilian casualties and might ignite a wider conflict.
-Middle East developments have so far not directly affected the global oil supplies, but many fear disruptions of exports from major crude producer and Hamas backer Iran and others. -Goldman Sachs analysts retained their first-quarter 2024 Brent crude price forecast at $95 a barrel but added that lower Iranian exports could cause baseline prices to rise by 5 per cent. -US consumer spending surged in September but was seen cooling off in early 2024.
Some economists believe the US Federal Reserve is done raising interest rates to fight inflation, which can slow economic growth and reduce oil demand. ‘’Crude oil prices declined in response to a pessimistic growth outlook in the Euro-zone and the robust performance of the dollar index. The dollar index has maintained its position above 106, and US 10-year bond yields are currently at 16-year highs, which has curbed the upswings in global commodity prices,'' said Rahul Kalantri, VP Commodities, Mehta Equities.
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