Brent Crude Oil Rises 2.42% to $78.33

It's worth noting that on Monday, oil prices fell to their lowest level since the beginning of the year.

Ignacio Teson•Thursday, August 8, 2024•1 min read

Brent Crude for October delivery closed Wednesday in the London futures market with a 2.42% increase, reaching $78.33.

North Sea crude, the European benchmark, rose by $1.85 compared to the last session on the Intercontinental Exchange, where it ended at $76.48.

Oil prices climbed more than 2% after hitting their lowest level since early January earlier this week, following a larger-than-expected drop in U.S. crude inventories, according to the U.S. Energy Information Administration (EIA). However, investors remain concerned about weak demand from China.

Additionally, tensions in the Middle East and the potential for an escalation of conflict in the region, following Iran’s promise to retaliate against Israel and the United States after the killing of two Hamas leaders, have increased fears of reduced oil supplies.

UKOIL

This concern is further fueled by announcements from countries like Libya, which reported a production decrease at the Sharara field. Sharara is operated by Akakus, a joint venture between the Libyan National Oil Corporation, Repsol, the American company TotalEnergies, Austria’s OMV, and Norway’s Equinor, due to ongoing protests.

On the other hand, West Texas crude climbed 3.5% to trade at $75.7. It’s worth noting that on Monday, oil prices fell to their lowest level since the beginning of the year.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.