Energy
Wednesday, April 10th, 2024 2:22 pm EDT
Key Points
- Crude oil futures remained close to five-month highs following Israel’s threat of retaliation against Iran if the Islamic Republic targets Israel directly.
- The West Texas Intermediate (WTI) contract for May delivery increased by 0.11%, reaching $85.32 a barrel, while June Brent futures rose by 0.15% to $89.70 a barrel.
- Despite the geopolitical tensions driving oil prices higher, they were offset by a hotter-than-expected inflation report, causing prices to pull back slightly. Additionally, Iran’s warning to Israel and the subsequent threat of retaliation added to the uncertainty, contributing to a more than 1% decline in oil prices for the week. However, both U.S. crude and the global benchmark have seen significant gains this year, up nearly 20% and 17%, respectively, amid escalating geopolitical tensions and a tightening global crude market.
Crude oil futures remained close to their five-month highs on Wednesday following Israel’s threat to retaliate against Iran if the Islamic Republic were to directly strike Israel. The West Texas Intermediate (WTI) contract for May delivery saw a modest increase of 9 cents to $85.32 a barrel, while June Brent futures rose by 13 cents to $89.70 a barrel. These gains attributed to geopolitical tensions were somewhat offset by a higher-than-expected inflation report, causing oil prices to retract slightly. The consumer price index for March rose by 0.4%, surpassing expectations, with a year-over-year increase of 3.5%. Israel’s warning to Iran, delivered by Israeli Foreign Minister Israel Katz via social media, highlighted the escalating tensions between the two nations. The threat of military action arises after Iran’s consulate in Damascus, Syria, was destroyed in a missile attack, allegedly by Israel, resulting in casualties among Iranian military officials. In response, Iranian Supreme Leader Ayatollah Ali Khamenei vowed to retaliate against Israel. Despite the recent rally in oil prices, which saw a nearly 20% increase in U.S. crude and a 17% rise in the global benchmark since the beginning of the year, oil prices experienced a slight decline of over 1% this week as investors began to secure profits. These fluctuations occur amid a tightening global crude market and heightened geopolitical tensions in the Middle East, contributing to the uncertainty surrounding oil prices in the near term.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/10/crude-oil-prices-today.html
