FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL: Oil Markets at European Close: Oil Surges on Potential Iran Attack

OIL
BulletEnergy BulletsCommodities

Oil markets have surged on Tuesday as various reports build that Iran is expected to launch a ballistic missile attack on Israel in response to its mounting attacks on its proxies in the last week – peaking with the assination of Hezbollah leader Nasrullah on Friday. 

  • Brent DEC 24 up 4.1% at 74.67$/bbl
  • WTI NOV 24 up 4.5% at 71.25$/bbl
  • The scale of the Iranian attack is unclear at present but could be similar to April according to some reports. The April attack was a largely symbolic retaliation at low value targets while most of the missiles were intercepted by Israel’s iron dome.
  • The markets are waiting to see the scale of the potential attack to see whether it looks like Iran will get dragged deeper into the conflict rather than via its proxies. As it stands, Iranian volumes have not been impacted by the near yearlong conflict causing previous price premiums to price off.
  • Agencia Nova sources report that Libyan production is returning following the recent central bank agreement, but Sharara (the biggest field) remains offline it said.
  • Last quarter, WTI dropped 16% on expectations that OPEC+ will bring barrels back to the market late this year against a backdrop of China weakness.
  • A panel of ministers from the OPEC+ producer group meets on Oct. 2 to review the market, with no policy changes expected.
  • Weekly U.S. oil storage data is due from the American Petroleum Institute (API) trade group later on Tuesday.
240 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Oil markets have surged on Tuesday as various reports build that Iran is expected to launch a ballistic missile attack on Israel in response to its mounting attacks on its proxies in the last week – peaking with the assination of Hezbollah leader Nasrullah on Friday. 

  • Brent DEC 24 up 4.1% at 74.67$/bbl
  • WTI NOV 24 up 4.5% at 71.25$/bbl
  • The scale of the Iranian attack is unclear at present but could be similar to April according to some reports. The April attack was a largely symbolic retaliation at low value targets while most of the missiles were intercepted by Israel’s iron dome.
  • The markets are waiting to see the scale of the potential attack to see whether it looks like Iran will get dragged deeper into the conflict rather than via its proxies. As it stands, Iranian volumes have not been impacted by the near yearlong conflict causing previous price premiums to price off.
  • Agencia Nova sources report that Libyan production is returning following the recent central bank agreement, but Sharara (the biggest field) remains offline it said.
  • Last quarter, WTI dropped 16% on expectations that OPEC+ will bring barrels back to the market late this year against a backdrop of China weakness.
  • A panel of ministers from the OPEC+ producer group meets on Oct. 2 to review the market, with no policy changes expected.
  • Weekly U.S. oil storage data is due from the American Petroleum Institute (API) trade group later on Tuesday.