Oil falls as geopolitical risk premium wanes - Business - DAWN.COM - DAWN.com
Oil falls as geopolitical risk premium wanes - Business - DAWN.COM
LONDON: Oil prices fell more than $2 on Friday, on track for a weekly loss as supply concerns driven by Middle East tensions eased, while jobs data raised expectations the US Federal Reserve could be done hiking interest rates in the biggest oil consuming economy.
Brent crude futures were down $2.03, or 2.4 per cent, to $83.82 a barrel at 1:32 p.m. EDT (1832 GMT). US West Texas Intermediate crude futures fell $2.21, or 2.7pc, to $80.26 a barrel.
Both benchmarks were on track for weekly losses of more than 6pc.
Hezbollah leader Sayyed Hassan Nasrallah, speaking for the first time since the Israel-Hamas war erupted, warned on Friday that a wider conflict in the Middle East was possible but did not commit to opening another front on Israel’s border with Lebanon.
“The market is taking this conflict in its stride, as it looks to be neither a significant demand or supply disruption event,” said John Kilduff, partner at Again Capital LLC in New York.
Published in Dawn, November 4th, 2023
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.