On Tuesday, oil prices reached three-month highs as attacks on shipping vessels continued to plague the Middle East region.
Price Update
- West Texas Intermediate (WTI) sits at $79.27, up 0.1%
- Brent crude remains at $83.31, down 0.3%
- Both WTI and Brent have seen a 10% increase so far this year
Geopolitical Unrest
- Houthi rebels continue to disrupt Red Sea shipping routes
- Ongoing conflict between Israel and Gaza poses a threat to oil supplies
- China’s reduction of key mortgage interest rates may stimulate economic growth and energy demand in the second-largest global economy
Market Analysis
- Susannah Streeter, from Hargreaves Lansdown, points out concerns over Middle East conflict
- Uncertainties around the oil supply from the region persist due to ship targeting incidents
- Factors like China’s slow recovery and the Federal Reserve’s hesitancy to cut interest rates may keep energy demand in check
Stock Performance
- Exxon Mobil: Rose by 0.1% in premarket trading
- Chevron: Gained 0.4%
- Occidental Petroleum: Saw a 0.1% increase
- ConocoPhillips: Dropped by 0.4%