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OIL: Oil Back Towards Friday Highs Following Death Of Israeli Hostage

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Brent & WTI rally in early London trade, adding to the weakness in bonds.

  • The move followed news of the death of an Israeli hostage held by Hamas.
  • Friday’s highs in both Brent ($79.30) & WTI ($75.57) present initial resistance.
  • Our commodities team note that markets wait for Israel’s response to Iran’s missile attack. Earlier Iran cleared its airspace but the country has since opened some airports.
  • Israel continued to strike targets in Lebanon and Gaza over the weekend.
  • The market weighs the risk of a strike by Israel on Iran’s oil facilities and further escalation to the area that could impact both oil and gas supplies. The U.S. is urging Israel to avoid Iran’s oil infrastructure.
  • Goldman Sachs estimates that Brent could increase to the $90s if Iranian oil production was hit but upside would be dependent on if OPEC offset any lost supply.
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Brent & WTI rally in early London trade, adding to the weakness in bonds.

  • The move followed news of the death of an Israeli hostage held by Hamas.
  • Friday’s highs in both Brent ($79.30) & WTI ($75.57) present initial resistance.
  • Our commodities team note that markets wait for Israel’s response to Iran’s missile attack. Earlier Iran cleared its airspace but the country has since opened some airports.
  • Israel continued to strike targets in Lebanon and Gaza over the weekend.
  • The market weighs the risk of a strike by Israel on Iran’s oil facilities and further escalation to the area that could impact both oil and gas supplies. The U.S. is urging Israel to avoid Iran’s oil infrastructure.
  • Goldman Sachs estimates that Brent could increase to the $90s if Iranian oil production was hit but upside would be dependent on if OPEC offset any lost supply.