INSUBCONTINENT EXCLUSIVE:
The global oil market experienced a significant upturn on Monday, November 18, 2024
Europe.This sudden shift in the market landscape reflects the complex interplay of geopolitical factors and supply concerns
Brent crude, the international benchmark, saw a notable increase.January 2025 contracts closed 3.18% higher at $73.30 per barrel on the
Intercontinental Exchange in London
Similarly, West Texas Intermediate (WTI) crude for December delivery rose by 3.36%, reaching $69.17 per barrel on the New York Mercantile
Exchange.Several key events contributed to this price surge
Reports of attacks on Israel, including incidents in Tel Aviv, sparked market concerns
The Israeli Defense Forces reportedly intercepted rockets launched from Lebanon, heightening regional tensions.These developments underscore
the fragile nature of peace in the Middle East and its impact on global oil markets
The ongoing conflict between Russia and Ukraine also played a role in the price increase.Oil Prices Down as US Crude Inventories Surge
(Photo Internet reproduction)The U.S
government made a significant policy shift, allowing Ukraine to use American-made weapons against Russian targets
This decision marks a departure from previous restrictions and could potentially escalate the conflict further.Rising Geopolitical Tensions
and Oil Market SensitivityIn response, the Kremlin warned of potential consequences, describing the U.S
This exchange highlights the delicate balance of power in Eastern Europe and its influence on global energy markets.The threat of expanded
conflict raises concerns about potential disruptions to oil supply from the region
Adding to these geopolitical factors, a production issue in Europe further tightened supply expectations.Equinor, a major Norwegian oil
company, halted production at its Johan Sverdrup field due to a power outage
As the largest oil field in Western Europe, this unexpected shutdown raised concerns about short-term supply constraints.These events
Geopolitical tensions, policy changes, and production issues can quickly impact prices, reflecting the interconnected nature of the global
energy landscape.As these situations continue to evolve, market participants will closely monitor developments for potential impacts on
supply and demand dynamics.
