The drums of war that are beating as the days go by in the Middle East region had a major impact yesterday on the prices of oil and gold. Its price Brent The price of a barrel of oil rose to $90, or approximately 6%.
While oil rose, the price of gold achieved daily gains of 3.34% to reach $1,954 per ounce. It should be noted that when investors fear turmoil in the markets, they turn to gold. It is now believed that the worst is yet to come, and all that remains to be seen is how bad things will get. The existing scenarios are many and the chances of finding a solution to the Gordian episode that has arisen are slim. Very little if not nonexistent.
Locally, what is certain is that prices at gas stations next week will jump with rough estimates suggesting they will reach at least 10 cents per litre, if not more. If the estimates that see the price of “black gold” as its first stop in the range of $100 per barrel are verified, things are expected to develop poorly for both the Greek and global economy.
The reason, or perhaps not the reason, behind the rise in oil prices was that the United States imposed sanctions yesterday on two shipping companies that violated the oil price ceiling set by the G7 to control the “entry” of Russian oil into the market.
The US Treasury Department said in a statement, “This action confirms the Treasury Department’s commitment to its international partners to reduce Russian government oil profits and curb the Russian war machine.”
“Rising prices
Against this backdrop, West Texas Intermediate crude, specifically the November delivery contract, rose $4.78, or 5.8%, to $87.69 per barrel on the New York Mercantile Exchange. On a weekly basis, it rose 5.9%.
at the same time, Brent December deliveries rose $4.89, or 5.7%, to $90.89 a barrel on the ICE exchange in London. On a weekly basis, the rise reaches 7.5%.
Oil prices rose on Friday “thanks to heightened geopolitical risks,” Lukman Otunuga, director of market analysis at FXTM, told MarketWatch.
He pointed out that “escalating tensions in the Middle East, home to nearly a third of global oil supplies, pushed prices higher, while US sanctions also increased the upward trend.”
“Supply concerns remain high amid growing concern about the spread of the conflict between Israel and Hamas in the region, which has led to significant disruptions to the already limited market,” Otunuga said.
Iranian Foreign Minister Hossein Amir-Abdollahian said that Iranian-backed Hezbollah fighters in the region may open another front if the Gaza siege and Israeli attacks continue.
Jump to the price of gold
The possibility that Israel will begin military operations in Gaza over the weekend has led to a significant rise in gold prices as well as oil. As one market analyst says: “I don’t think traders wanted to sell oil or gold over the weekend, when there is a war erupting in the Middle East.”
Against this backdrop, the price of gold for December delivery rose $58.50, or 3.1%, to settle at $1,941.50 per ounce, up 5.2% over the week. This is the highest level for gold since September 22 and the largest daily gain since early December, according to Dow Jones market data.
Among other metals, silver rose 4.3 percent to $22.78 an ounce, the first weekly gain in three weeks. Platinum rose 1.2 percent to $879.28, while palladium fell 0.3 percent to $1,141.69 and is trading in negative territory this week.
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