#oilfutures #OPEC+ #supplycuts #oilprices #oilmarket #MidEastSupply #IsraelHamasconflict #energymarket
Oil futures experienced a shift towards the higher side on Monday. This uplift was primarily driven by forecasts that the Organization of the Petroleum Exporting Countries and its allies, commonly known as OPEC+, might move towards enforcing deeper supply cuts. The aim behind these potential cuts is to provide much-needed support to prices. Over the past month, oil prices have been in a slump, marking four consecutive weeks of decline. This downturn in prices had emerged in response to reduced anxiety regarding supply disruptions in the Middle East, a reaction triggered by the Israel-Hamas conflict.
The recent geopolitical tensions between Israel and Hamas had initially stirred concerns about oil supply from the Middle East, a crucial region for global energy markets. Stakeholders were apprehensive about disruptions that could potentially lead to a supply shortage and subsequent price rise. However, as these concerns waned, oil markets responded, paving the way for a persistent drop in prices over the weeks. Now, the outlook is changing, with speculation about OPEC+ possibly implementing supply cuts to balance the prices, causing an uptick in oil futures this Monday. As the energy market sits in the nexus of geopolitics and demand-supply dynamics, such shifts are often anticipated.
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