Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Oil prices see biggest weekly surge in a year as middle east tensions escalate

by October 5, 2024
October 5, 2024
Oil prices see biggest weekly surge in a year as middle east tensions escalate

The price of oil has surged this week, marking its largest weekly gain in over a year as investors react to escalating tensions in the Middle East.

Brent crude, the international benchmark, rose 0.8% on Friday to reach $78.24, capping a 9% weekly increase and approaching the $80 mark last seen in August. West Texas Intermediate (WTI), another key benchmark, climbed 0.75% to $74.26.

The sharp rise in oil prices follows heightened conflict between Israel and Hezbollah, which is inching closer to full-scale war. Iran’s military has fired nearly 200 ballistic missiles at Israel, the most significant direct attack to date, raising fears of a broader regional conflict. In response, the United States and Israel have warned Iran of “severe consequences,” and discussions are reportedly underway about potential retaliatory strikes on Iranian oil facilities.

Oil prices had been trending lower earlier in the month due to concerns over weak global demand and a potential increase in supply. However, the latest developments in the Middle East have reignited market fears over supply disruptions, driving prices higher.

Shares of major oil companies have benefitted from the rally. Shell’s stock increased by 0.5% to £25.77½, while BP rose by 1.9% to 416¾p, with both companies seeing gains of over 5% throughout the week.

Before the escalation, oil had been trading near a two-week low, driven by expectations of weak demand, particularly from China, and a decision by Opec to gradually bring back production. The cartel has agreed to increase daily output by 180,000 barrels starting in December, after delaying production cuts by two months.

Market analysts have revised their forecasts for Brent crude, projecting it to average $81.52 per barrel this year, down from earlier expectations of $82.86. Both Opec and the International Energy Agency (IEA) have also downgraded their outlooks for global oil demand. Opec now expects demand to grow by 2.03 million barrels per day this year, slightly down from previous estimates, while the IEA has revised its forecast to 900,000 barrels per day, reflecting weaker demand growth.

The surge in oil prices has triggered inflation concerns, pushing the yield on 10-year UK government bonds to 4.07%, its highest level since July. Gold, a traditional safe haven during times of instability, has also seen a price increase, rising by $2.86 to $2,657.86 per troy ounce.

Meanwhile, the rise in oil prices has negatively impacted the airline industry. Shares of London-listed airlines such as Wizz Air and easyJet fell sharply, with Wizz Air dropping 3.7% to £12.74 and easyJet falling by 2.6% to 493p.

The ongoing uncertainty in the Middle East continues to drive volatility in oil markets, with investors closely watching for further developments that could impact global supply and demand.

Read more:
Oil prices see biggest weekly surge in a year as middle east tensions escalate

0
FacebookTwitterGoogle +Pinterest
previous post
US dockworkers end strike after securing six-year, 62% pay rise
next post
Private equity firms target Evelyn Partners’ accountancy division despite regulatory concerns

You may also like

Apple security flaw ‘actively exploited’ by hackers to...

August 19, 2022

Rise in back pain and long-term sickness linked...

November 11, 2022

Truss U-turn on pension triple lock will provide...

October 20, 2022

First Electric Coach Service to be Trialled in...

February 27, 2024

CEO Alona Shevtsova Announces Free Sends Personal Account...

April 21, 2025

West Midlands could reap £1.5bn a year manufacturing...

August 31, 2022

SMEs are at risk of losing a David...

March 30, 2023

New CBI Chief has concerns over organisation’s survival

February 8, 2024

Unite Strikes £250m Deal with Newcastle University Amid...

February 19, 2024

UK on track for nationwide full-fibre broadband rollout...

March 22, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • HMRC inheritance tax investigations surge 37% as treasury seeks to plug revenue gap

      June 9, 2025
    • Believ secures £300m to roll out 30,000 public EV charge points across the UK

      June 9, 2025
    • US and China hold London talks to ease trade war tensions

      June 9, 2025
    • British fathers urged to join landmark ‘dad strike’ over poor paternity leave

      June 9, 2025
    • IVF parents should have right to paid fertility leave, says GMB union

      June 9, 2025
    • Reform UK clashes with Bank of England over interest payments to lenders

      June 9, 2025

    Categories

    • Business (8,158)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved