Oil Prices Soar Amid Middle East Tensions

30 Sep 2024 , 09:11 AM

Oil prices rose on Monday, fuelled by growing concerns about potential supply interruptions from the Middle East’s oil-producing region following Israel’s increased attacks on Iranian-backed militants.

Brent crude futures for December delivery rose 10 cents, or 0.14%, to $71.64. US West Texas Intermediate oil futures rose 8 cents, or 0.12%, to $68.26 a barrel.

Last week, Brent declined over 3%, while WTI plummeted around 5%, as demand worries intensified after fiscal stimulus from China, the world’s second-largest economy and the top oil importer, failed to strengthen market confidence.

U.S. Defence Secretary Lloyd Austin has authorised the military to strengthen its presence in the Middle East, with the Pentagon stating on Sunday that if Iran, its partners, or its proxies harm US soldiers or interests, Washington “will take every necessary measure to defend our people”.

Still, prices remain under pressure as OPEC and its allies, known as OPEC+, aim to increase output by 180,000 barrels per day in December, and oil exports from Libya are anticipated to resume.

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