Crude prices continue to whipsaw as traders closely watch for further escalations in the Israel-Hamas war.
Oil futures dropped on Monday after Israel’s invasion of Gaza did not immediately cause a regional backlash – but investors are bracing for more volatility in commodities amid fears the conflict could spread across the Middle East.
Daniel Hynes, a commodity strategist at ANZ, said there was a sense that the market had become “war weary” as Russia’s invasion of Ukraine ground on for more than 17 months. But the “ignition of tensions in the Middle East has brought the price of oil back into focus”, Mr Hynes said. “It’s all eyes on what happens in on the ground in Israel and Gaza,” Mr Rennie said. “We would need to see a material escalation for a sharp appreciation ”per day until the end of the year, the medium term outlook for oil prices is “higher for longer”. “I certainly wouldn’t be surprised to see prices sustaining not far away from current levels through the end of this year and into next year,” Mr Rennie said.
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