Oil Rises Amid Political Uncertainty in the U.S. and the Middle East

Oil prices climbed on Monday amid political uncertainty in the United States and the Middle East,
offsetting some of the pressures from a stronger dollar and weak demand in China.

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Brent crude futures rose 15 cents, or 0.2%, to $85.18 a barrel by 0425 GMT, after closing 37 cents lower on Friday.
U.S. West Texas Intermediate (WTI) crude was at $82.41 a barrel, up 20 cents, or 0.2%.

Oil prices shrugged off the impact of a stronger dollar, which rose following a failed assassination attempt on U.S. presidential candidate Donald Trump.
“I don’t think you can ignore the uncertainty stemming from the assassination attempt that
occurred at the beginning of the week, which will cast a shadow over a deeply divided country ahead of the elections,”
said Tony Sycamore, a market analyst at IG.

In the Middle East, talks aimed at ending the war in Gaza between Israel and the Palestinian Hamas movement stalled on Saturday after three days, although a Hamas official said on Sunday that the group had not withdrawn from the discussions. Meanwhile, an attack that Israel said targeted the commander of Hamas’ military wing killed 90 people on Saturday.

The ongoing geopolitical risks have driven oil prices higher amid uncertainty about the volatile situation in the Middle East. Additionally, oil markets remain broadly supported by supply cuts from OPEC+, with Iraq’s oil ministry stating it will compensate for any surplus production starting in early 2024.

Last Week

Brent crude fell more than 1.7% after four weeks of gains, while U.S. WTI crude futures dropped 1.1%,
as weak oil demand in China, the world’s largest crude importer,
clashed with strong summer consumption in the United States.
China’s crude oil imports fell 2.3% in the first half of this year to 11.05 million barrels per day amid disappointing fuel demand and independent refineries cutting production due to weak profit margins.

Data showed that China’s economy slowed in the second quarter as prolonged real estate downturns and job insecurity affected domestic demand, maintaining expectations that Beijing would need to implement more stimulus measures.

Energy services firm Baker Hughes reported on Friday that the number of active oil rigs in the United States, an early indicator of future production, fell by one to 478 last week, the lowest level since December 2021.

Oil Rises Amid Political Uncertainty in the U.S. and the Middle East

Oil Rises Amid Political Uncertainty in the U.S. and the Middle East

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