Energy
Sunday, April 7th, 2024 4:27 am EDT
Oil prices have surged to their highest levels in five months, driven by escalating tensions in the Middle East, particularly between Israel and Iran. Israel’s closure of 28 embassies worldwide amid fears of retaliatory strikes from Iran, following a missile attack on its consulate in Damascus that killed a top Iranian general, has heightened geopolitical concerns. This week, both the West Texas Intermediate (WTI) and Brent crude contracts experienced a “golden cross,” where the 50-day moving average surpasses the 200-day moving average, typically signaling positive momentum and potential for further price increases. Tamas Varga, an oil broker analyst, noted that the geopolitical situation has intensified to levels unseen since the October 7 Hamas attack on Israeli civilians. Ukrainian drone strikes on Russian oil infrastructure have also impacted crude oil supply, contributing to the rally in oil prices, with WTI up nearly 21.2% and Brent up 18.3% this year amidst mounting geopolitical tensions and expectations of a supply deficit.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/05/us-oil-tops-86-on-pace-for-weekly-gain-as-israel-closes-embassies-over-iran-threats.html
