OIL
Brent oil prices continued their ascent during early Thursday trading, maintaining the momentum from previous sessions. This upward trend finds support from escalating geopolitical tensions and a weakening dollar. Concerns persist in the Middle East, particularly with the latest developments in Gaza, where the Israeli Prime Minister rejected a proposed ceasefire.
While Gaza remains the focal point of the crisis, its repercussions extend throughout the region, raising the spectre of a broader conflict with potential intervention from other parties. Such a scenario could disrupt the Suez shipping route and impact oil production in Gulf nations like Iran. In this context, the heightened tensions contribute to the upward trajectory of oil prices, further bolstered by the recent weakening of the dollar. Given that crude oil is priced in USD, a depreciation of the currency against its counterparts results in an increase in the dollar cost of oil.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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