Oil ticks higher ahead of Biden's Israel trip as traders await further escalation of war; Brent at $90/bbl
₹7,188 per bbl, having swung between ₹7,132 and ₹7,528 per bbl during the session so far, against a previous close of ₹7,239 per barrel. Also Read: Indian crude basket to average $87/bbl, OMCs to bear the brunt as oil surges 6% over Israel-Hamas war Iran pledged pre-emptive action from the ‘resistance front’ of its allies that include the Hezbollah movement in Lebanon, reported Reuters.
Analysts say that oil prices are wavering as energy traders await to see if the US diplomatic efforts will be successful in preventing the Israel-Hamas conflict from turning into a wider regional war. -Since 2019, the US has imposed sanctions on oil exports from Venezuela, a member of the Organization of Petroleum Exporting Countries (OPEC), to punish President Nicolas Maduro's government following elections in 2018 that US considered a sham.
-The US government has been seeking ways to increase the flow of oil to world markets to alleviate high prices. But any real oil output increase by Venezuela will take time because of a lack of investment.
-The CEO of Saudi Arabia's Saudi Aramco said on Tuesday the company could ramp up oil production within weeks if needed, as global consumption is set to reach a record level by year-end. Analysts noted that WTI crude oil futures eased at the start of the week, as the US intensified diplomatic efforts to contain the crisis in middle-east.
US can’t squeeze Iranian and Russian oil at the same time, with significant political risk for Biden as he heads into the 2024 Presidential election. ‘’Oil prices were also under pressure amid reports that the US will ease sanctions on Venezuela’s oil exports in exchange for steps to ensure the country holds fair presidential elections next year,'' said Ravindra
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