Oil futures: Crude prices higher as geopolitical tensions escalate
Quantum Commodity Intelligence – Crude oil futures Monday were higher after overturning earlier losses, as markets again faced mixed price signals between the prospects for demand growth and geopolitical concerns.
Front-month Apr24 ICE Brent futures were trading at $82.82/b (1840 GMT), compared to the day's low of $81/b and Friday's settle of $81.62/b. The more-liquid May24 contract was trading at $81.94/b.
At the same time, Apr24 NYMEX WTI was trading at $77.82/b versus Friday's settle of $76.61/b.
"Oil has been caught between bullish factors such as lower OPEC output and elevated geopolitical risks and bearish concerns about weak demand in China," said ANZ commodity strategist Daniel Hynes.
The market initially shrugged off reports of a weekend attack on another oil tanker, which was repelled by a US destroyer, although escalating attacks continue to disrupt shipping rather than actual supplies.
"Attacks on merchant ships by Houthi rebels continue, but, the Israel-Hamas war hasn't significantly broadened or impacted supply," noted ANZ's Hynes.
Over the weekend, US and UK forces reportedly struck a number of Houthi sites, which officials said contained missiles, launchers, rockets, drones and air defence systems.
Regional tensions also increased after Hezbollah militants fired a barrage of 60 rockets at the Golan Heights in northern Israel, after the IDF said it killed a senior Hezbollah commander during strikes deep inside Lebanon.
Markets largely shrugged off the latest round of protests in Libya, which briefly shut-in up to 45,000 bpd of crude from the Wafa field, along with disrupting natural gas pipeline supplies to Italy.
Ceasefire
In the broader Middle East conflict, the White House said it is looking to broker an Israel-Hamas hostage deal in 'coming days' after Friday's meeting in Paris.
According to CNBC, negotiators from Israel, Egypt, Qatar and the US made progress on the framework of a new hostage deal, a plan that would release dozens of hostages in exchange for several hundred Palestinian prisoners held by Israel and a temporary ceasefire.
"It is still under negotiation in terms of hammering out the details," National Security Adviser Jake Sullivan told CNN, adding that Qatar and Egypt still have to discuss the proposal with Hamas.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu said "it's too soon to say" whether Hamas will agree to the terms of the new proposal.
According to Israeli press reports, an Israeli delegation will depart for Qatar hostage talks on Monday but will play a minimal role at the Doha meeting.
