June 13, 2024
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OIL & GAS RENEWABLE ENERGY

Oil Prices Increase to 3% as Israel Attack on Iran

Oil prices jump  $3 a barrel on Friday, in reaction to reports that Israel had fired missiles on Iran, sparking concerns that there might be disruption on MiddleEast oil supply.

The benchmark contracts surged more than $3 then eased slightly. At 0200 GMT, Brent futures were up $2.63, or 3%, to $89.74 a barrel. The most active U.S. West Texas Intermediate contract climbed $2.56, or 3.1%, to $84.66 per barrel.

A report from US news outlet ABCNews, said that Israeli missiles had hit a site in Iran. Iran’s Fars news agency said explosions were heard at an airport in the Iranian city of Isafahan but the cause was not immediately known. Several flights were diverted over Iranian airspace, as reported by CNN.

“If these reports turn out to be true, fears over further escalation will only grow, as well as concerns that we are potentially moving closer towards a situation where oil supply risks lead to actual supply disruptions,” Warren Patterson, head of commodities strategy at ING, said in a note. Reuters gathered.

The reports have sparked worry that Israel has responded to Iran’s drone and missile attack of last weekend, Patterson said. Investors have been watching closely to see Israel’s reaction after Iran’s April 13th retaliatory attack on Israel, which only caused ‘modest damage’.

In another development, one of OPEC’s members, Venezuela, lost a key U.S. license allowing the country to export oil to markets globally. The U.S. also announced sanctions on Iran, another OPEC member, targeting its unmanned aerial vehicle after the country’s drone strike on Israel last weekend.

 

 

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