Oil prices went up on Tuesday due to worries over tensions in the Middle East. The price increase was driven by concerns about conflicts in the region, even though there were worries about weak demand for oil.The market was also waiting for monthly reports from oil agencies to get a clearer picture of the situation.
Brent futures, which indicate future oil prices, rose slightly to $82.47 a barrel, while U.S. crude prices increased to $78.10 a barrel. While the conflict between Israel and Hamas hasn’t directly affected oil supplies, Yemen’s Houthis, who support Iran, have been attacking ships in the Red Sea and Gulf of Aden since November in support of Palestinians.
Despite the tensions, the rise in oil prices was limited because experts predict lower demand for oil and more oil being produced by countries outside of OPEC. The market is eagerly awaiting the monthly reports from OPEC, the IEA, and the Energy Information Administration to understand the future demand for oil better.
Source: Reuters