Oil Prices Still at US$83. Crude oil prices experienced a correction, erasing most of the spike in Hamas attacks on Israel at the weekend.
The price of West Texas Intermediate (WTI) crude oil is trading near US$83 per barrel after falling on Wednesday (11/10/2023), following a New York Times report that US intelligence indicated that Iran was surprised by Hamas’ attack on Israel.
Thursday (12/10/2023), the price of WTI for November delivery fell 0.3 percent to US$83.23 per barrel at 07.14 am Singapore time. Meanwhile yesterday’s Brent oil price, for December delivery, closed 2.1 percent lower at US$85.82 per barrel.
This could reduce the likelihood of additional sanctions on Iranian oil and help prevent the country and its proxies throughout the Middle East from becoming involved in conflict.
This is because oil prices also fell after reports of attacks by Hamas against Israel which shocked Iran. Meanwhile, the industry-funded American Petroleum Institute reported a large increase in inventories, according to people familiar with the data.
However, inventories in Cushing, Oklahoma – the delivery point for WTI – were seen dropping back towards very low levels after a small increase last week. Official data will be released later today, as will monthly oil market reports from OPEC and the International Energy Agency.
Oil Prices Still at US$83. This week’s rise in oil output has been capped by OPEC+ leader Saudi Arabia on Tuesday reiterating its support for the group’s efforts to balance oil markets.
On the other hand, record high US production and a possible deal between the US and Venezuela have also helped ease concerns about tight supplies. Prices are still slightly higher this year after a spike last quarter after Saudi Arabia and Russia curbed production.