Energy
Monday, July 29th, 2024 1:09 pm EDT
Key Points
- Crude oil futures fell on Monday: Oil prices dropped as traders remained relatively unaffected by the potential for a wider conflict between Israel and Hezbollah, despite recent geopolitical tensions.
- Energy prices and market reaction: As of Monday, West Texas Intermediate (WTI) crude oil was at $76.86 per barrel, down 0.4%, while Brent crude was at $80.80 per barrel, down 0.41%. Gasoline and natural gas prices also experienced minor declines. The market’s response to Middle East tensions has been muted recently due to the absence of immediate risks to oil supplies.
- Impact of geopolitical and economic factors: Analysts have noted that while tensions in the Middle East, such as a potential conflict involving Iran, could impact oil prices, the recent price pullback is also influenced by concerns over China’s economic health.
Crude oil futures experienced a decline on Monday, despite escalating tensions between Israel and the Iran-backed militia Hezbollah. The market appeared largely indifferent to the potential for a broader conflict following a deadly rocket attack from Lebanon that killed 12 children in the Israel-occupied Golan Heights. Israel has attributed the attack to Hezbollah, although the militia has denied involvement. In response, Israel’s security cabinet has granted Prime Minister Benjamin Netanyahu the authority to determine the timing and nature of any retaliatory actions.
In the energy markets, West Texas Intermediate (WTI) crude oil for September delivery fell by 30 cents to $76.86 per barrel, marking a decrease of 0.4%. Despite this drop, WTI crude has seen a year-to-date increase of 7.3%. Brent crude, the global benchmark, declined by 3 cents to $80.80 per barrel, also down 0.41%, with a year-to-date gain of 4.9%. RBOB gasoline for August delivery decreased by 1 cent to $2.44 per gallon, a reduction of 0.46%, but it remains up 16.5% for the year. Meanwhile, natural gas prices for August fell by 1 cent to $2.00 per thousand cubic feet, reflecting a 0.1% decrease and a 20% drop year-to-date.
Despite the initial spike in oil prices earlier this spring due to Middle Eastern tensions, the market’s reaction to regional conflicts has softened in recent months, especially in the absence of imminent threats to oil supplies. John Evans, an analyst at oil broker PVM, noted in a client report that the market seems to be growing desensitized to such geopolitical events. Analysts have highlighted that a potential war involving Israel and Hezbollah could escalate into a direct conflict with Iran, a major OPEC member supporting the militia. However, recent declines in oil prices are also attributed to concerns over the health of China’s economy, adding another layer of uncertainty to the market dynamics.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/29/crude-oil-prices-today.html
