Despite growing tensions in the Middle East, oil prices decline in Asian trading

Despite growing tensions in the Middle East, oil prices decline in Asian trading

Despite growing tensions in the Middle East, oil prices decline in Asian trading

Wednesday's March Brent crude futures finished 47 cents higher at $82.87 a barrel. At $82.50, the more active April contract ended the day 67 cents higher.

Rising oil prices are a result of global unrest and encouraging economic indicators.

Early Asian trade on Wednesday saw an increase in oil prices due to unfavorable fundamentals, building on gains from the previous day amid the intensifying violence in the Middle East.

Today's expiring March Brent oil futures dropped 37 cents to $82.50 a barrel by 0146 GMT. The April contract, which is traded more often, dropped 24 cents to $82.26 per barrel.

West Texas Intermediate oil prices in the US dropped 18 cents to $77.64.

Tony Sycamore said that the primary problem with being too optimistic about crude at this point is that the technical picture is still bearish and has not kept up with recent developments, such as the oil spill last week close to the Jordan-Syria border. included a lethal drone strike on US forces as well. an IG market analyst.

In a note, however, ANZ analysts said that "a strong US military response" to the drone attack "could still trigger a strong market reaction."

Without providing further information, President Biden said that he had chosen how to react to the incident and that he want to prevent a wider conflict in the Middle East.

The US Pentagon speculated that Kataib Hezbollah, an Iraqi armed organization with ties to Iran, could have been responsible for the strikes, but no definitive determination was reached. On Tuesday, the group ceased all of its military activities against US forces in the area. declared a halt.

Regarding the Israeli-Palestinian conflict, Hamas said on Tuesday that it had received a proposal for a ceasefire and was examining it. After the war, this seemed to be the most significant peace attempt; the first and only temporary truce had broken in November.

But according to Sycamore, the market was worried that the Houthis, who are supported by Iran, will continue to target ships in the Red Sea, causing disruptions to international commerce and the oil trade.

downturnAmong the contributing factors are the worsening crisis in China's real estate market after China Evergrande Group's bankruptcy, which has sparked worries about demand in the country that imports the most crude oil globally. On Wednesday, the markets will also be watching for the publication of China's PMI data, which is expected to indicate a drop for the fourth straight month.