Latest concerns after today’s Israeli attack on Qatar added support to oil prices.
The WTI crude oil for October delivery was last seen trading at $ 0.29 (or 0.47%) to $ 62.55 per barrel.
On the Geophysical Front, the Russia-Ukraine war continues in intensity as Russia has ignored the threats of approval from the US and the West, and the country also shut down diplomatic efforts by US President Donald Trump to negotiate Russia and Ukraine.
In the latest air military strike by Russia on Ukraine, about 21 civilians were killed in a glide bomb attack in a queue for pension in Yarova village in Donnetsk.
In addition to releasing the dangers of approval, Trump has not yet attached Russian oil in any form against Russia, punishing a prominent buyer of India with 25%”penalty tariff”. Another major buyer China is spared.
However, potential sanctions against Russian oil exports by the US and West have increased oil prices.
On Sunday, OPEC+ members-countries agreed to increase their oil production per day, starting from October 137,000 per day. Cartel has already successfully implemented the 411,000 output hike in June and July, and is implemented its planned growth of about 555,000 BPD for August-September.
Although there was speculation that Sunday’s output decision would result in a huge figure, which triggers oversupply concerns, was lower than the actual declared number, keeping the markets stable.
In a sudden significant development in the Middle East, the Israeli army hit the Hamas delegation in Doha, the capital of Qatar in an Israeli operation, called the “Shikhar’s Conference”, which triggers fresh tension and leads oil prices.
Allegedly, an Israeli official has stated that the US was informed before the attack.
According to S&P Global Commodity Insights, China is reportedly allegedly increasing its crude oil stockpilling with an inventory rate of 530,000 BPD. It has also helped soaking additional production in markets.
Note, China’s total coastal crude oil inventions are about 1.4 billion barrels. Being the world’s top crude oil importer, China officially keeps the inventory number close to its chest without reporting. Analysts look at the overall supply and refinery processing rates to calculate the amount of oil reserves.
At the upcoming 16–17 September meeting, the US Federal Reserve is expected to cut borrowing rates. The price of the US dollar may vary depending on the size of the cut.
According to analysts, the oil is a dollar-sect item, its price will be replaced due to low rates.
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