How geopolitical tensions affect global oil markets
The oil market has always been sensitive when it comes to geopolitical tensions. Recent events have only reinforced this fact. Oil prices fell on Tuesday, just a day after they had risen by more than 4%. Traders were nervously watching the military clashes that took place between Israel and Hamas, a Palestinian Islamist movement. Brent crude fell 36 cents, to $87.79 per barrel. U.S. West Texas Intermediate crude (WTI), however, eased 35 cents at $86.03 per barrel. Although these fluctuations might seem commonplace in the world oil trading, they are having a significant impact on the global energy market.
Geopolitical Chessboards & Oil Prices
Oil markets are currently gripped by the fear of supply disruptions caused by the Middle East’s ongoing conflict. Hamas launched a major military attack on Israel which led to air strikes and increased tensions. While Israel’s crude oil production is relatively modest, the region is a vital artery for global oil supply. The Middle East is a region that could have major implications for oil prices. Traders are watching closely. Even the threat of interruptions in supply has led traders to…