Oil prices stabilise amid Middle East tensions

Oil prices stabilised on Monday after a seven per cent decline last week due to concerns about Chinese demand and reduced worries about supply disruptions in the Middle East.

Brent crude futures increased 0.11 per cent to $73.14 a barrel, while US West Texas Intermediate crude futures rose by 0.14 per cent to $69.32 a barrel.

Last week, Brent and WTI experienced their largest weekly declines since early September, falling by more than seven per cent and eight per cent, respectively.

The contracts saw their largest weekly declines since Sept. 2 due to slowing economic growth in China and decreasing risk premiums in the Middle East.

President Joe Biden mentioned a chance to resolve issues between Israel and Iran. However, the conflict in the Middle East escalated as Israel announced plans to target Hezbollah’s financial operations in Beirut.

In response to its economic challenges, China announced a cut in benchmark lending rates on Monday morning. This move is part of a broader stimulus package aimed at reviving the economy.

On the supply side, the number of oil and natural gas rigs operating in the United States decreased for the fourth time in five weeks, according to a Baker Hughes report. The rig count declined by one to 585.

Attribution: Reuters

Subediting: M. S. Salama