Crude Oil Rebounds Amid Tensions

• 12 Apr 2024

On 12th April 2024, Oil prices climbed due to Middle East tensions, yet they are poised for weekly losses amid dwindling U.S. rate cut expectations.

Key Points

• Oil Prices Rise: Amid heightened tensions in the Middle East, oil prices climb, with Brent crude futures up by 0.57% to $90.25 and U.S. West Texas Intermediate crude futures rising by 0.72% to $85.63.
• Weekly Losses Expected: Despite the rebound, oil is set for weekly losses, driven by expectations of fewer U.S. interest rate cuts amidst persistent inflation concerns.
• Geopolitical Tensions: Suspected Israeli airstrikes on Iran's embassy in Damascus escalate tensions in the region, with Iran vowing revenge, raising concerns about supply disruptions.
• Central Bank Policies: Divergent policies emerge as the European Central Bank hints at future rate cuts while the Federal Reserve remains cautious about reducing interest rates due to persistent inflation in the U.S.
• Market Outlook: Oil prices are influenced by geopolitical risks, economic conditions, and supply dynamics, with ING analysts forecasting Brent to average $87 a barrel in the second quarter of the year.