Oil prices surged for a second straight session on Monday, driven by fears of supply disruptions due to escalating tensions in the Middle East. Brent crude futures for November rose by $1.12, reaching $73.10 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 93 cents, hitting $69.11 per barrel.
Concerns over potential impacts on oil supply intensified after Israel ramped up attacks on Palestinian group Hamas and Iranian-backed forces like Hezbollah. This raises fears of a broader conflict involving Iran, a major oil producer.
Despite gains on Monday, oil prices have been volatile, with Brent and WTI both experiencing significant declines last week due to weak demand from China, the world’s largest oil importer. However, the possibility of further instability in the Middle East could keep prices on an upward trajectory.
As OPEC+ prepares to end voluntary supply cuts in December, market analysts predict further fluctuations, with WTI potentially dropping to lows seen in 2021.
