Smoke rose from the southern Lebanese border village of Chihine following an Israeli airstrike on July 28, 2024. Despite escalating violence in the region, U.S. crude oil futures dropped nearly 2% on Monday. Traders appeared largely indifferent to the growing tensions between Israel and the Iran-backed militia Hezbollah.
A rocket launch from Lebanon over the weekend killed 12 children in the Israel-occupied Golan Heights, with Israel holding Hezbollah accountable for the attack, which the militia denies. Israel’s security Cabinet has granted Prime Minister Benjamin Netanyahu’s government the authority to decide how and when to respond.
Closing energy prices for Monday were as follows:
– West Texas Intermediate September contract: $75.81 per barrel, down $1.35, or 1.75%. Year to date, U.S. oil has gained 5.8%.
– Brent September contract: $79.78 per barrel, down $1.35, or 1.66%. Year to date, the global benchmark is up 3.6%.
– RBOB Gasoline August contract: $2.41 per gallon, down 4 cents, or 1.84%. Year to date, gasoline is up 14.9%.
– Natural Gas August contract: $1.90 per thousand cubic feet, down 9 cents, or 4.94%. Year to date, gas has decreased by 24.1%.
While Middle East tensions had previously driven oil prices higher, the market’s response has been more subdued recently due to the absence of a direct threat to oil supplies. Helima Croft, head of global commodity strategy at RBC Capital Markets, noted that the oil market dismissed the Middle East war narrative after the April exchange between Iran and Israel failed to escalate into a full-scale conflict.
Croft warned, however, that a direct confrontation between Israel and Hezbollah could potentially draw Iran into the conflict because of the militia’s significance to Tehran. Although Israel might opt for a restrained response, the frequent cross-border clashes and the rising number of internally displaced people in Israel suggest a higher risk of a severe conflict or miscalculated escalation.
Original Story https://www.cnbc.com/2024/07/29/crude-oil-prices-today.html
Category :
Tags:
