The price of oil rises in early trade as Middle East hostilities fuel worries about supplies

2 Nov 2023 , 10:11 AM

Early on Thursday, oil prices increased as investors remained cautious about the possibility that the Middle East conflict will affect the region’s oil supply.

U.S. West Texas Intermediate crude prices climbed 46 cents to $80.90 a barrel, while Brent crude futures increased 38 cents to $85.01 a barrel.

According to state media, Iran’s Supreme Leader, Ayatollah Ali Khamenei, demanded that Muslim countries stop exporting food and energy to Israel and stop its shelling of the Gaza Strip.

According to U.S. energy data, Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), produced about 2.5 million barrels of crude oil per day in 2022.

In their second attack on Gaza’s Jabalia refugee camp in two days, Israeli troops killed another Hamas commander on Wednesday, the military reported, as the first wave of civilian evacuees from the embattled territory crossed into Egypt.

In an attempt to destroy the Islamist organization following its lethal cross-border raid into southern Israel on October 7, Israel resumed bombing the heavily populated Gaza Strip from the air, sea, and land.

Investors anticipated a meeting of the Bank of England on Thursday. According to a Eurostat flash reading, October inflation in the Euro zone was at its lowest level in two years, supporting the idea that the European Central Bank is unlikely to raise interest rates anytime soon.

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