Global energy prices are finishing the week the way they started. It is shooting higher as a cocktail of risks to supply has put investors on edge. Yes! The oil and gas prices are climbing again.
The price of Brent crude, the global oil benchmark, rose more than 4% Friday to trade at nearly $90 a barrel. West Texas Intermediate crude oil futures, the US benchmark, jumped 4.2% to $86 a barrel.
The main driver, according to Edward Moya, a senior market analyst at Oanda, is the unfolding conflict in Israel. Also, the fears that it could spill over into the wider oil-rich Middle East region.
“The oil market is very sensitive to developments with the Israel-Hamas war. This is what he told CNN. “There are fears that, even as we see US production hit record levels, we could see a major shock to supplies in the near future.”
Analysts told CNN earlier this week that the war — sparked by a deadly assault by Hamas militants over the weekend — had made investors wary of a potential escalation that could embroil Iran.
Israel has long accused Iran of engaging in a form of proxy war by backing groups — including Hamas — that have launched attacks against it. Tehran has denied involvement in the weekend’s attacks.
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