Brent rose 2% to near $80, its highest level since late August.
The price of Brent oil, the benchmark price in Europe, rose just over 2% in mid-session this Monday. approaching $80 per barrela maximum not seen since August 30 last year. Thus, at 12:00 the Brent price was trading at $79.6 after rising to $79.79 a barrel a few minutes earlier.
Despite starting the session with a decline, the Brent price continues to rise and remains above $77. In fact, if crude oil prices close positive on Monday, it will be the fifth straight session of gains. For my part, West Texas Intermediate (WTI), the US benchmark price, rose 2.07% to $75.2 before the official market open.
Brent’s reaction to the conflict between Israel and Iran
The upward trend in Brent oil prices this Monday comes in the context of the fact that last week already ended with growth revaluation more than 8% amid growing tensions in the Middle East. Its momentum began to be felt at the end of September and continued from October 2, after Iran’s attack on Israel.
However, last Friday, in the last session of the week, Brent rose 4% due to the risk of an Israeli attack on oil facilities in Iran, which US President Joe already confirmed on Thursday. . Biden.
Brent crude thus opened Monday’s session following last week’s trend and touching $80 a barrel, a high not seen since August this year, when its average price was $80.86. However, it is worth remembering that the price of Brent fell during the three months from July to September, when its average price was $72.12. Likewise, its price a far cry from the $102 it reached on average in June 2022..
Meanwhile, analysts note that in the current conflict scenario, oil is one of the most volatile values and that if there is a major Israeli attack on Iranian oil facilities, it will lead to a sharp rise in oil prices. may contribute to a recovery in inflation.
In addition, this would also allow Russian oil to rise in price, which would also be an undesirable derivative,” Enrique Ayala, an analyst at the Fund for Alternatives and a brigadier general in the reserves, explained in an interview with La Hora de la 1 last week.