Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 10 17T015436Z 1 LYNXMPEJ9G01I RTROPTP 4 VENEZUELA CHEVRON - Business Express
FILE PHOTO: A worker pumps fuel at a gas station of state-run oil firm PDVSA, in Caracas, Venezuela, December 2, 2022. REUTERS/Gaby Oraa/File Photo

Oil prices edge higher ahead of Biden Middle East trip


Oil prices edge higher ahead of Biden Middle East trip

By Nicole Jao

NEW YORK (Reuters) – Oil prices edged higher on Tuesday ahead of a trip by U.S. President Joe Biden to the Middle East that is likely to involve balancing support for Israel with trying to prevent any regional escalation of its war with Hamas.

Following a drop of more than a dollar on Monday, Brent futures rose $0.74 to $90.39 a barrel at 10:40 a.m (1440 GMT). U.S. West Texas Intermediate (WTI) crude rose $0.69 to $87.35.

Fears the Middle East conflict could widen drove big gains in both oil benchmarks last week. Global benchmark Brent gained 7.5% in its largest weekly gain since February.

Biden’s visit to Israel on Wednesday will seek to balance showing support for Israel’s war on Hamas and trying to rally Arab states to help prevent a regional conflict, after OPEC-member Iran pledged “pre-emptive action” from the “resistance front” of its allies that include the Hezbollah movement in Lebanon.

“Oil prices are wavering as energy traders await to see if the U.S. diplomatic efforts will be successful in preventing the Israel-Hamas conflict from turning into a wider regional war,” said Edward Moya, senior market analyst at OANDA.

“The crude demand outlook also got a small boost after the latest round of U.S. economic data showed that the consumer is still healthy and that industrial production is tentatively picking up,” he said.

Elsewhere, Venezuela’s government and opposition are set to resume long-suspended talks on Tuesday, which could lead to Washington easing sanctions, multiple sources said.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Since 2019, the U.S. has imposed sanctions on oil exports from Venezuela, a member of the Organization of Petroleum Exporting Countries (OPEC), to punish President Nicolas Maduro’s government following elections in 2018 that Washington considered a sham.

The U.S. government has been seeking ways to increase the flow of oil to world markets to alleviate high prices. But any real oil output increase by Venezuela will take time because of a lack of investment.

“The market is really tight right now and that’s why we’re so nervous,” Phil Flynn, an analyst at Price Futures Group, said.

The CEO of Saudi Arabia’s Saudi Aramco said on Tuesday the company could ramp up oil production within weeks if needed, as global consumption is set to reach a record level by year-end.

OPEC+, which comprises OPEC countries and leading allies including Russia, has cut output since last year in what it says is pre-emptive action to maintain market stability.

Looking ahead, the oil market is waiting for U.S. oil inventory data from the American Petroleum Institute (API), an industry group, on Tuesday and the government’s Energy Information Administration (EIA) on Wednesday.

 

(Reporting by Nicole Jao in New York; Additional reporting by Paul Carsten in London and Sudarshan Varadhan in Singapore; Editing by Kim Coghill, Ed Osmond, Jan Harvey and Barbara Lewis)

Recent Post: