Hamas to release a number of foreign captives
Oil central bank meeting today:Brent crude futures, set to expire later in the day, settled down 4 cents at $87.41 per barrel for December delivery. The more actively traded January contract saw a larger drop, decreasing by $1.33, or 1.4%, to $85.02.
In the case of U.S. West Texas Intermediate crude, the December delivery contracts dropped by $1.29, or 1.6%, to $81.02, and the January delivery contracts slipped by $1.18 to $80.50.
OPEC crude supply rises in October
Trading exhibited fluctuations, with prices seeing increases of up to $1 at various points during the session. However, it’s important to note that prices have remained below the $90 per barrel mark.
Additionally, a spokesperson for Hamas announced their intention to release several foreign captives in the upcoming days.As explained by Phil Flynn, an analyst at Price Futures Group, some of the earlier “war premium” has been removed from oil prices.
Furthermore, a Reuters survey indicated that OPEC’s crude output saw an increase of 180,000 barrels per day (bpd) in October, primarily driven by higher production in Nigeria and Angola.
U.S. crude output rises to monthly record in August
The Energy Information Administration reported that crude oil production in the United States reached a new monthly record in August, totaling 13.05 million barrels per day.
Concerns about declining fuel demand from China, the world’s second-largest oil consumer, were fueled by disappointing manufacturing and non-manufacturing activity data that came in below expectations.
According to Eurostat’s flash estimate, Euro zone inflation for October hit a two-year low, dropping to 2.9% from September’s 4.3%. Consequently, it’s unlikely that the European Central Bank (ECB) will raise interest rates in the near future.
Euro zone inflation hits two-year low in October
Global crude prices are expected to remain below $90 a barrel this year and the following year due to slow global economic growth, as indicated by a Reuters poll. However, there is potential for an increase if the Israel-Hamas conflict escalates and involves more countries in the Middle East, leading to concerns about tighter oil supply.
Investors are cautious about the possibility of additional nations becoming involved. Fiona Cincotta, a senior financial market analyst at City Index, noted that while recent developments in the Middle East have not yet significantly impacted oil prices, the risk of Iran getting involved grows as the ground invasion intensifies, which could further exacerbate supply concerns. Meanwhile, Israel’s Prime Minister Benjamin Netanyahu rejected calls for a ceasefire to address the humanitarian crisis, and Israeli forces targeted Hamas within the network of tunnels in the Palestinian enclave. Looking ahead to the conclusion of a U.S. Federal Reserve meeting on Wednesday, analysts anticipate that the central bank will maintain steady interest rates, according to a poll conducted by CME’s Fedwatch tool.