Defense agreements for Brent oil increased by two cents and amounted to 66.27 US dollars per barrel. The American raw oil West Texas Intermediate is cheaper for one cent, and it is traded at a price of 62.54 dollars per barrel.
The US President Donald Tramp said a long-awaited agreement on the truce in Gaza and the release of hostages, as part of the plan for the end of the two-year war in the Palestinian Enclave. Israeli Prime Minister Benjamin Netanyahu said he would convene his government to approve the arrogair agreement. The signing of the agreement is expected to be on Thursday at Noon by Israeli.
“The devil is always in the details and I would avoid speculation at the moment because of the many misses we have seen in the past,” said for Reuters Claudio Galimberti, the main economist of Rystad Energy, in Note.
The war in Gaza influenced the growth of oil prices because investors estimated the potential risk for global supply if conflicts escalated into the wider regional conflict.
Michael McCarthy, Executive Director of the Australia and New Zealand Investment Platform, said that the truce in Gaza is unlikely to change the oil offer in the Middle East, as the OPEC + has reached its increased production goals.
Organization of oil exports and their allies have agreed on Sunday increase in production in November, which was less than the expectations of the market, thus mitigated concerns due to surplus offer. The prices rose around one percent on Wednesday, reaching the highest level in seven days, after investors interpreted in Ukraine as a sign that the sanctions of Russia, the second largest world oil exporter, will remain in force for some time.
“Until the war in Ukraine lasts, the geopolitical risk premium remains elevated, because the production of Russian oil that is at risk is still high,” said Galimbert from Rystad.
Meanwhile, the total weekly delivery of American oil products, which is considered an indicator of American oil consumption, increased to 21.99 million barrels a day, which is the most than December 2022, published on Wednesday Energy Information Administration, Transport Finance.hr.
JP Morgana analysts stated that the global oil in October began weaker, as numerous containers in the port of Los Angeles, the mileage of truck transport in China – pointed to slow down activities.
Global oil demand was on average 105.9 million barrels per day in the first seven days of October, which is 300,000 barrels than last year, but 90,000 barrels less than JP Morgan’s estimates, analysts in the client’s note.
(Vijesti.ba)
