(London) Oil prices rose on Friday, driven by the geopolitical risk premium as investors’ attention focused on Israel, on the 14th day of the war with Hamas.
Around 5:55 a.m. ET, a barrel of North Sea Brent for December delivery was up 1.20% at $93.49.
Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in November, which is the last day of trading, rose 1.37% to 90.59 dollars.
“Markets continue to price in war and geopolitical bounties, as the drumbeat of war continues unabated, despite efforts by world leaders to contain this conflict,” comments Exinity analyst Han Tan when asked by AFP.
Israel is still preparing for a ground offensive in Gaza following the deadliest attack in its 75-year history.
“You now see Gaza from afar, soon you will see Gaza from within,” Israeli Defense Minister Yoav Gallant said Thursday during an inspection of troops, according to a video posted on the social network X by the army .
“This is the strongest indication yet that a land invasion is imminent,” says Tamas Varga, an analyst at PVM Energy.
When the “geopolitical thermometer” climbs “into the red”, “oil prices generally firm up, especially if the unrest takes place near oil-producing regions” as currently in the Middle East, explains the analyst.
“Speculators are aware of the risk inherent in the Middle East powder keg for global oil supplies,” assures AFP Stephen Innes, analyst at SPI AM.
“Although Israel is not an oil exporter, physical buyers must hedge against the risk of possible disruptions”, whether it concerns shipping lanes that have become dangerous for the transport of crude, or even against the risk, although “unlikely, of a terrorist attack against Saudi Arabia,” he explains.
