Due to mounting supply threats amid simmering Middle East tensions, oil prices dipped in choppy trade on Thursday and appeared set to end a two-session winning streak of almost 3 percent, according to Reuters.
By 09:50 a.m. Saudi time, Brent crude futures had down 25 cents, or 0.3 percent, to $78.08 a barrel, while US West Texas Intermediate crude had dropped 13 cents, or 0.3 percent, to $75.10. In early trade on Thursday, both benchmarks had bounced back from near-2024 lows before going negative.
The death of key members of the militant groups Hamas and Hezbollah last week raised the risk of Iran launching reprisal strikes against Israel, adding to the volatility generated by the potential for Middle East supply interruptions.
Though tankers have been forced to travel longer routes due to attacks on ships in the Red Sea, supply has not been impacted thus far.
In a note, ANZ Research stated, “The market has been on edge as it awaits a response from Iran.”
In a statement, Libya’s National Oil Corp. announced that it has placed its Sharara oilfield under force majeure as of Tuesday. The statement also stated that the business had steadily decreased the field’s production as a result of protests.
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