Amidst escalating tensions in the Middle East, oil prices saw a rebound on Monday, aiming to recover from the significant declines witnessed last week. The surge in prices comes in the wake of developments such as Israel’s evacuation orders in Gaza and Saudi Aramco’s decision to raise its official crude prices.
Last week, oil prices faced a notable decline, primarily driven by market sentiments regarding geopolitical risks, particularly concerning potential conflicts involving Iran and Israel. Additionally, the surge in U.S. crude inventories, coupled with weakened demand, contributed to the downward pressure on oil prices.
Prime Minister Benjamin Netanyahu’s recent remarks underscored Israel’s firm stance amid international pressure regarding the conflict in Gaza. Netanyahu emphasized Israel’s commitment to continuing operations until Hamas, the governing authority in Gaza, is defeated.
Saudi Arabia’s decision to increase crude prices reflects the country’s confidence in robust demand, especially in Asian markets. This move indicates a positive outlook regarding future oil demand and market conditions.
The combination of these geopolitical developments and market dynamics has contributed to the volatility and recovery in oil prices observed in recent trading sessions.