{"id":2063300,"date":"2023-10-11T11:57:01","date_gmt":"2023-10-11T15:57:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oil-falls-after-saudi-pledge-investors-keep-wary-eye-on-israel\/"},"modified":"2023-10-11T11:59:51","modified_gmt":"2023-10-11T15:59:51","slug":"oil-falls-after-saudi-pledge-investors-keep-wary-eye-on-israel","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oil-falls-after-saudi-pledge-investors-keep-wary-eye-on-israel\/","title":{"rendered":"Oil prices drop following Saudi Arabia&#8217;s commitment; investors remain cautious due to Israel&#8217;s situation."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Foil-falls-after-saudi-pledge-investors-keep-wary-eye-on-israel%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2063300&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p>By Nicole Jao<\/p>\n<p>October 11, 2023 \u2013 8:32 AM PDT<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-2\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-2'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>NEW YORK (Reuters) \u2013 Oil prices\u2063 fell over 2% on Wednesday as fears of disruption to supplies \u200ddue \u2064to conflict\u200d in the Middle East receded a day after top OPEC\u2063 producer Saudi Arabia pledged to help stabilize the market.<\/p>\n<p>Brent \u2062futures fell $2.10, or 2.4%, to $85.55 a barrel \u2062by 10:41 a.m. EDT (1441 GMT). U.S. West Texas Intermediate (WTI) crude fell $2.55, or 3.0%, to $83.42.<\/p>\n<p>Brent\u200d and WTI had surged more than $3.50 on\u2064 Monday on\u200d concern the \u2063clashes between Israel and Palestinian Islamist group Hamas\u2063 could escalate into \u2064a broader conflict \u200cthat could\u200d disrupt global\u2062 oil supply.<\/p>\n<p>Prices settled slightly lower\u2063 on Tuesday\u200c after Saudi Arabia \u200bsaid it \u2063was working with regional and international partners to prevent an escalation, and\u200b reaffirmed its efforts to stabilise oil markets.<\/p>\n<p>\u201cWe\u2019ve taken 6.4% of the refinery utilization rate\u200c off the\u2062 table in the last three EIA (U.S. Energy Information Administration) reports\u2026 That\u2019s over \u20621,000,000 barrels that\u200b didn\u2019t go\u200c through the refinery,\u201d said Bob Yawger,\u2064 director of energy futures at\u200d Mizuho, a bank.<\/p>\n<p>Moreover, in the higher rates environment moving forward that \u201ccould put \u200cthe\u2064 brakes on the upside as \u200cfar \u2062as crude \u200boil,\u201d Yawger said.<\/p>\n<p>Interest rate hikes to tame inflation can slow economic growth \u2062and reduce\u200b oil demand.<\/p>\n<p>Exxon Mobil (XOM.N) agreed to \u200cbuy U.S. rival Pioneer Natural Resources (PXD.N) in \u200ban all-stock deal valued at $59.5 billion that would make \u2062it the biggest producer in the Permian \u200bshell, the \u2063largest\u200b U.S. oilfield.<\/p>\n<p>\u201cBoth WTI and Brent retreated \u200cyesterday as concerns of a sudden and unexpected\u2062 supply disruption have been swept aside for now,\u201d PVM\u2062 analyst Tamas \u200bVarga\u200d said.<\/p>\n<p>Trading house \u2062Mercuria sees oil prices reaching $100 a barrel if the\u200d situation in \u2064the Middle East escalates further, deputy CEO Magid \u2063Shenouda said on Wednesday.<\/p>\n<p>Russia and Saudi Arabia met \u200cin\u200c Moscow on \u200bWednesday, when Russian president Vladimir\u200c Putin \u2062said that OPEC+ coordination will continue\u2064 \u201cfor the predictability \u200dof the oil market.\u201d<\/p>\n<p>OPEC+ is the partnership between the Organization of\u200c the Petroleum Exporting\u200c Countries (OPEC) and its allies, including\u200b Russia.<\/p>\n<p>Putin also\u200c urged companies to\u2063 prioritise the Russian domestic\u2064 market. The country\u2019s ban on gasoline and some\u200b diesel exports was rolled back again last week as\u200c diesel exports \u2062that arrive at\u2062 ports by pipeline\u2063 were\u200b permitted.<\/p>\n<p>Elsewhere, investors will be looking ahead to the\u200c release\u200b of the U.S.\u200d Federal Reserve\u2019s September policy meeting minutes due later on Wednesday for clues on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oil-climbs-as-recession-fears-begin-to-fade\/\" title=\"Oil rises as recession worries ease.\">future interest rate decisions<\/a>.<\/p>\n<p>U.S. Treasury\u2062 Secretary\u2062 Janet Yellen said \u200bthat she\u2064 still expected the U.S. economy to experience a soft landing, \u2062despite \u201cadditional concerns\u201d\u2064 brought about by the situation in Israel.<\/p>\n<p>In Europe, the \u2062German government confirmed it\u2062 expects the\u200c economy to contract \u2063by\u200d 0.4% this year because of persistently high inflation.<\/p>\n<p>Global energy \u200cconsumption will likely increase through 2050 and outpace advances \u2063in energy efficiency, the U.S. EIA said in an outlook.<\/p>\n<p>The EIA will release its oil\u200b supply and \u200ddemand expectations for the\u200c U.S. later\u2063 Wednesday.<\/p>\n<p>Reporting by Nicole Jao in New York; Additional reporting by \u2062Robert Harvey, \u200bLaura Sanicola and Muyu Xu; Editing by Sharon Singleton and John Stonestreet<\/p>\n<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>IDF Reports claims 40 Israeli Babies were beheaded in a Kibbutz by Hamas while the Israeli Army\u200b counterattacks<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>President\u200d Biden confirms \u2064Hamas is holding \u200bAmerican citizens hostage \u200cin Israel.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>The Biden Administration\u2064 is downplaying \u2063the \u200cwar on Israel\u200c waged by Iranian-backed Hamas terrorists.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>One America\u2019s Jessamyn Dodd sits\u2062 down with Lara Trump to discuss \u200bthe latest Trump developments.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Samsung said its preliminary third-quarter \u2063profit dropped by a smaller-than-expected 78%.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>The \u2062EU\u2019s industry chief gave Meta 24 hours to inform\u200c him \u200dof measures taken\u200b to \u200ccounter the spread of disinformation on its platforms.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>EU antitrust regulators are asking Microsoft\u2019s users and rivals \u200cwhether Bing should comply with new tough\u2063 tech \u200drules.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Shares of Arm Holdings \u200crose \u20633% on Monday after a wave\u2063 of \u2063\u201cbuy\u201d ratings from Wall Street\u200b analysts.<\/strong><\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What are the potential\u200c factors that \u200ccould impact oil prices in the future, aside from the situation in the Middle East<\/h2>\n<p><span>  Oil Prices Fall as Middle East Conflict Fears Recede<\/p>\n<p>October 11, 2023 &#8211; 8:32 AM PDT<\/p>\n<p>Oil prices dropped over 2% on Wednesday as concerns about supply disruptions due to conflict in the Middle East eased, following Saudi Arabia&#8217;s commitment to stabilize the market. Brent futures fell $2.10, or 2.4%, to $85.55 a barrel by 10:41 a.m. EDT (1441 GMT), while U.S. West\u2063 Texas Intermediate (WTI) crude fell $2.55, or 3.0%, to $83.42.<\/p>\n<p>On Monday, prices had surged more than $3.50 as tensions between Israel and Palestinian Islamist group Hamas\u200c raised fears of a broader conflict that could disrupt global oil supply. However, prices settled slightly lower \u200con \u2064Tuesday after Saudi Arabia reassured the market that it was working with regional and international partners to prevent an escalation and stabilize oil \u2064markets.<\/p>\n<p>The decline in prices can also be attributed to a decrease in refinery utilization rates. Bob Yawger, the director of energy futures at Mizuho, stated that three reports from the U.S. \u200cEnergy Information Administration showed \u200ba 6.4% reduction in refinery utilization rate, which equals over one million barrels that have not gone \u200bthrough refineries. Additionally, Yawger mentioned that the possibility of higher interest rates in the future could slow economic \u200bgrowth and reduce oil demand.<\/p>\n<p>In other news, Exxon\u200c Mobil agreed\u200d to acquire U.S. rival Pioneer Natural Resources in an all-stock deal\u200c valued at $59.5 billion. This\u2063 acquisition would make Exxon Mobil the largest producer in the Permian shell, the largest oilfield \u200cin the United States.<\/p>\n<p>Analysts from PVM \u2064and Mercuria have differing viewpoints on future oil prices. PVM analyst Tamas Varga stated that concerns about a sudden supply disruption have been pushed aside for now, leading to the retreat in oil\u2064 prices. On the other hand, deputy CEO Magid Shenouda of Mercuria suggested that if the situation in the Middle\u200b East\u2064 escalates further, oil prices\u2063 could reach $100 a barrel.<\/p>\n<p>Meanwhile, Russian President Vladimir Putin \u200baffirmed OPEC+ coordination during a\u2064 meeting with Saudi\u2064 Arabia in\u2063 Moscow. OPEC+ is a partnership between OPEC and its allies, including Russia. Putin also urged companies to prioritize the Russian domestic market and rolled back\u2063 the country&#8217;s ban\u2063 on gasoline and diesel exports.<\/p>\n<p>Investors are eagerly awaiting the release of\u200b the U.S. Federal Reserve&#8217;s\u2064 September policy meeting minutes for insights on future interest rate decisions. U.S.\u200c Treasury Secretary \u200dJanet Yellen expressed her belief in a soft landing for the U.S. economy despite additional\u2064 concerns arising from the situation in Israel.<\/p>\n<p>In Europe, the German government confirmed its expectation of a 0.4% contraction in the economy this\u2064 year due to persistently high inflation.<\/p>\n<p>Looking ahead, the U.S. \u2063Energy Information Administration predicts that global energy consumption will increase through 2050, surpassing gains in energy efficiency.<\/p>\n<p>In conclusion, oil prices have fallen as fears of supply disruptions\u200b in the Middle East have diminished. Saudi Arabia&#8217;s commitment to market \u200cstabilization, along with factors like decreased refinery utilization rates and the possibility of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/oil-falls-after-saudi-pledge-investors-keep-wary-eye-on-israel\/\" title=\"Oil prices drop following Saudi Arabia's commitment; investors remain cautious due to Israel's situation.\">interest rate hikes impacting oil demand<\/a>, have contributed to this decline. However, the situation remains\u200b uncertain, and analysts are closely monitoring\u2062 developments in the Middle East and other global trends that could impact oil prices in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil prices dropped by more than 2% on Wednesday after concerns about supply disruption in the Middle East eased. This came after Saudi Arabia, the leading OPEC producer, promised to assist in stabilizing the market. Brent futures declined by $2.10.<\/p>\n","protected":false},"author":1911,"featured_media":2063301,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2063300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2063300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2063300"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2063300\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2063301"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2063300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2063300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2063300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}