West Texas Intermediate crude oil prices rebounded above $75 a barrel this morning amid concerns that tensions in the Middle East could spread widely and affect oil supplies after Israel sent warplanes to attack Hezbollah in southern Lebanon.
As of 6:52 a.m. Thailand time today, West Texas Intermediate (WTI) crude for October delivery rose 60 cents, or 0.80%, to $75.43 a barrel. On Friday, WTI crude for October delivery rose $1.82, or 2.49%, to close at $74.83 a barrel.
Bloomberg News reported that early Sunday (August 25), Israel sent more than 100 warplanes to destroy thousands of Hezbollah missile bases. Hezbollah later responded by firing more than 200 rockets at Israel. Israeli officials confirmed that Israel suffered only minor damage from Hezbollah’s retaliation.
Hezbollah, which is backed by Iran and designated a terrorist organization by the United States, has declared that it will continue fighting with Israel until Israel accepts the terms of a ceasefire in Gaza.
Additionally, WTI crude prices received support from Federal Reserve Chairman Jerome Powell’s signal to cut interest rates in September. This gives investors hope that the rate cut will help stimulate the economy and demand for oil.
Speaking on stage at the Fed's annual meeting in Jackson Hole, Wyoming, on Friday, Powell said: “The time has come for the Fed to cut interest rates. That's because the risk of inflation accelerating has declined. The Fed does not expect the labor market to weaken.”
By InfoQuest News Agency (August 26, 2024)
Tags: WTI, WTI, Oil Price