Fuel oil prices increased again in the world market. Iran is preparing a retaliatory attack on Israel using Iraqi territory in the coming days—Oil prices rose within hours of the news. Oil prices rose more than 1 percent on Friday (Nov 1), to more than $1 a barrel, to pare weekly losses. British news agency Reuters reported this news in a report.
According to the report, the price of Brent crude increased by 1.39 dollars per barrel or 1.9 percent. Its previous price was 74.20 dollars per barrel. And West Texas Intermediate (WTI) crude rose $1.44 a barrel, or 2.1 percent, to $70.70 a barrel.
Israeli intelligence has claimed that Iran is preparing to attack Israel with a large number of drones and ballistic missiles from Iraqi territory in the coming days. Most likely, this attack could happen before the US presidential election on November 5. The US news outlet Axios reported the news on Thursday, citing two unnamed Israeli sources.
SEB research analyst Ole Havalby said this raises the possibility of further hostilities spilling over ahead of the US election.
Oil prices were expected to rise after OPEC+ announced it could delay planned December oil production by a month or more, four sources familiar with the matter told Reuters on Wednesday, citing concerns about oil demand and rising supply.
A decision is likely to be taken early next week, two of the sources said.
Weekly losses could be more than one percent due to rising oil prices. Oil prices fell 6 percent on Monday, following an October 26 Israeli attack on Iran's military.
While the situation in the Middle East may worsen sooner than expected, both Israel and Iran appear reluctant to move toward an all-out regional war, Halvi said.
“Iran can exercise restraint in any overreaction, like the limited attack by Israel last weekend,” he said. So it can be seen primarily as a show of force rather than an invitation to war.'
IG analyst Tony Sycamore said all bets are off ahead of the US election and China's NPC standing committee meeting next week.
“I think it will depend on who wins the US elections and if there is any detailed decision on tax cuts from the NPC standing committee meeting,” he said.
Analysts say Vice President Kamala Harris and former US President Donald Trump have differing views on Iran and Russia, which could lead to changes in US policy towards oil producers.
