Nov 14, 2024 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) The oil market experienced a volatile session on Wednesday, November 13. Crude futures closed higher despite a stronger dollar.
Geopolitical tensions in the Middle East continued to influence the market. An Israeli attack in Beirut, Lebanon's capital, resulted in six casualties.
On the New York Mercantile Exchange, West Texas Intermediate crude for December delivery rose by 0.45%. This increase amounted to 31 cents, bringing the price to $68.43 per barrel.
Brent crude for January delivery, traded on the Intercontinental Exchange, gained 0.54%. This 39-cent increase pushed the price to $72.28 per barrel.
Earlier in the day, oil prices had been declining. Low demand from China and forecasts of increased supply from non-OPEC+ countries put pressure on the market.
These factors were highlighted in OPEC's report released the previous day. Market analysts note that demand concerns, particularly from China, continue to overshadow geopolitical risks.
Oil Market Dynamics
Recent improvements in refining margins have not significantly altered the weak outlook for oil demand. This situation reflects the complex interplay of global economic factors affecting the energy sector.
OPEC and its allies are not expected to increase production for most of the coming year. This stance may change if Iran's oil exports decrease.
In addition, the group appears to prioritize supporting fiscal budgets over gaining market share. This strategy highlights the delicate balance OPEC+ must maintain in the global oil market.
The potential for stricter enforcement of sanctions by the U.S. government looms as a significant risk. Such a move could provide OPEC+ nations with an opportunity to reintroduce barrels to the market.
However, the impact on supply and demand balances would likely take several months to materialize. These developments underscore the ongoing challenges in the oil market.
Balancing geopolitical tensions, economic pressures, and strategic decisions by major producers continues to shape the industry's landscape. The market remains sensitive to shifts in global demand and supply dynamics.
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COMTEX_459802785/2604/2024-11-14T10:26:58
