On Monday, oil prices surged after an escalation in Middle East wars, which has sparked their record gains in over a year, as long-running Israel-Hamas tension remains in focus.
In the Asian afternoon session, Brent futures for December delivery plummeted by -0.38% to $77.75 a barrel. West Texas Intermediate futures for November contracts declined by -0.23% to $74.21 per barrel.
Moreover, trading volumes were somehow restricted for the Golden Week holidays in China, as Beijing markets are set to reopen on Tuesday.
Additionally, supply interruptions are in sight on the first anniversary of the Israel-Hamas dispute.
Meanwhile, oil gains built on bets on Mideast supply disturbance as the long-running dispute showed few signs of cooling. Monday signaled a year since the Hamas strike on Israel, which triggered renewed aggression between the two countries.
Furthermore, reports revealed that Hezbollah rockets had hit Jerusalem’s Haifa City.
According to reports, Israel was assessing striking oil production factories, a move that could interrupt crude supplies and mark an extreme escalation in the dispute.
On the other hand, the Organization of Petroleum Exporting Countries kept output unchanged during a talk last week and indicated plans to start boosting yields from next month.
Saudi Arabia Lifts Asia Oil Costs as Volatility Holds Market
According to reports, Saudi Arabia has surged its oil prices for Asian countries’ purchasers due to escalated volatility in the market as traders focus on developments in the Mideast war.
Furthermore, sources noted that Saudi Amarco raised the official selling price of its primary Arab Light oil grade by $0.90 to a premium of $2.20 per barrel against the Asian buyers.
Traders and refiners said the firm anticipated raising the premium by $0.60 per barrel. Meanwhile, Aramco has reduced the price of all grades in the US and Europe.
On the other hand, reports revealed that oil costs have climbed since last month as Iran launched missile attacks on Israel in retaliation for Lebanon strikes that almost annihilated the leadership of Hezbollah.
