Oil prices rose nearly $2 per barrel in early trading on Wednesday, October 18, 2023, after industry data showed a larger-than-expected draw on US crude inventories. These news partly influenced the US stock markets, where the price of stock titles fell. These developments also come amid fears of disruptions to oil supplies from the Middle East due to the deepening war between Israel and the Palestinian Hamas movement. The entire situation in the Gaza Strip was exacerbated by the attack on a hospital on Tuesday, October 17, 2023, where around 500 Palestinians were killed.
Currently, during the European morning of Wednesday, October 18, 2023, at approximately 7:46 CET, the US light oil WTI (West Texas Intermediate) was traded on the commodity market NYMEX (New York Mercantile Exchange) at a value of USD 88.39 per barrel with a daily growth of +2.00% of its previous price so far. This current price, according to technical analysis data, represents a total annual increase of +18.22% from its price over the last 52 weeks, from which since the beginning of this year 2023, the price of WTI crude oil has increased by +13.68% from its previous price at the end of last year 2022. According to analysts in connection with financial strategists, the tension in the so-called Middle East region is the current cause of the increase in oil prices on the global commodity market, as investors and oil traders are afraid of supply shortages precisely because of fears of the expansion of the war conflict in this area, where a significant part of the world’s production takes place oil.
Even the President of the United States of America, Mr. Joe Biden, intends to address the issue with his personal visit to Israel, despite the fact that Palestinian leader Abbas canceled the planned meeting. US President Joe Biden is therefore planning to visit Israel on Wednesday 18/10/2023 to express support for the country in the war with the Palestinian radical movement Hamas. The White House said on the matter that it would make it clear that it did not want the conflict to expand. In a similar spirit and with an expression of support for Israel, the German Chancellor Mr. Olaf Scholz visited Tel Aviv yesterday, Tuesday, October 17, 2023, and promised help to the State of Israel not only on behalf of Germany, but also the countries of the European Union. Meanwhile, US retail sales rose more than expected in September 2023 data, fueling expectations of another interest rate hike by the FOMC before the end of 2023. Raising interest rates to curb inflation may slow economic growth and reduce demand for oil.
The European counterpart of the American light oil WTI, i.e. the North Sea oil Brent, was traded on the ICE (Intercontinental Exchange Europe) commodity market at a value of USD 91.45 per barrel during the European Wednesday morning on 18/10/2023, at approximately 8:42 CET with a daily increase of + 1.71% of its previous price. This current price of Brent oil, according to technical analysis data, thus represents a total annual growth of +13.73% of its price over the last 52 weeks, from which since the beginning of this year 2023 the price of Brent oil has increased by +11.87% of the price compared to the price at the end last year 2022. These current oil prices as of Wednesday 18/10/2023 were reached in a situation where the exchange value of the US dollar (USD) was moving at a point level of USD 106.10 points with with a daily drop of -0.13% of the point value according to this index, which compares the value of the USD with the other six major world currencies.