Oil Prices Dip Following Last Week’s Spike Due To Middle East Conflict
2023.10.30 16:32
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Oil prices experienced a decline on Monday, following a significant increase on Friday due to escalating tensions in the Middle East. The surge in prices was triggered by Israel’s cautious ground invasion of Gaza, sparking concerns of the conflict spreading to other nations in the region and potentially disrupting global oil production.
The Middle East plays a crucial role in the oil sector, contributing approximately one-third of global production. Despite the ongoing conflict, major players such as Iran and Saudi Arabia have so far refrained from direct involvement.
In addition to geopolitical tensions, market participants are also closely monitoring economic indicators. The Federal Reserve’s upcoming decision on interest rates is under scrutiny, as are figures related to China’s manufacturing and services growth.
China’s slow recovery from the economic downturn is indicating a potential for weaker energy demand, which could further impact oil prices. As a result of these combined factors, prices of West Texas Intermediate and , two essential oil benchmarks, have seen a decline.
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