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Oil prices slip amid Middle East tensions and anticipation of economic indicators

EditorPollock Mondal
Published 10/30/2023, 06:37 AM
© Reuters.

Oil prices took a downturn early Monday, following a significant rise last Friday. This fluctuation was largely influenced by the escalating Israel-Hamas conflict, which has raised concerns over potential disruptions in global crude supplies. The Middle East, currently embroiled in this conflict, is responsible for approximately one third of the world's oil production.

Despite the ongoing tension, major oil producers such as Iran and Saudi Arabia have remained uninvolved directly. This development has led to an uncertain investment climate, with investors also awaiting the Federal Reserve's upcoming decision on interest rates. It is anticipated that borrowing costs will be held steady.

Adding to these dynamics are expectations around data on China's manufacturing and services growth. China's sluggish recovery has sparked concerns over consistently weak energy demand. However, positive economic indicators could potentially trigger price increases.

In light of these factors, West Texas Intermediate (WTI) experienced a 1.5% decrease, falling to $84.28 per barrel. Brent Crude also saw a drop of 1.1%, bringing its price down to $89.47 per barrel.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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