• Wednesday, November 13, 2024
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Oil prices dip after reaching month-high amid Middle East tensions

Big US oil companies reveal massive payments to foreign governments

Oil prices edged lower in early Asian trading on Tuesday as traders took profits following Monday’s surge to a one-month high. The earlier price rally was fuelled by fears of an escalating conflict in the Middle East.

The market’s response comes as fighting in the region intensifies. Iran-backed Hezbollah fired rockets at Haifa, Israel’s third-largest city, whilst Israel appears poised to expand its offensive into Lebanon. This development follows a year after the Hamas attack on Israel that sparked the ongoing war in Gaza.

By 2:00 WAT, Brent crude futures had fallen 23 cents (0.3%) to $80.70 per barrel. U.S. West Texas Intermediate futures also dropped by 20 cents (0.3%) to $76.94 a barrel.

Read also: Nigeria crude oil grades sell above $80 amid geopolitical tension

Both benchmarks had risen over 3% on Monday, reaching their highest levels since late August. This capped off last week’s rally, which saw prices climb by more than 8% – the largest weekly gains in over a year.

The upward trend began after Iran launched a missile barrage on Israel on 1 October. Israel has vowed to retaliate and is considering its options, with Iran’s oil facilities potentially in the crosshairs.

Read also: Oil jumps over $3 a barrel as Middle East conflict stokes supply worry

This ongoing tension in the Middle East continues to keep oil markets on edge, with potential supply disruptions remaining a key concern for traders and analysts alike.

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