As the war between Israel and Hamas intensifies, New York crude oil prices have reached their highest level in a week.
On the 27th (local time), the December delivery West Texas Intermediate (WTI) crude oil price at the New York Mercantile Exchange rose by $2.33 (2.8%) from the previous day to trade at $85.54 per barrel. This is the highest level since the 20th. On a weekly basis, it fell by $2.54 (2.88%) compared to last week.
On this day, oil prices rose amid growing concerns over supply due to the expansion of ground operations in the Gaza Strip. The Israel Defense Forces (IDF) reportedly launched a large-scale supply operation in the Palestinian Gaza Strip.
Concerns that geopolitical risks in the Middle East region could gradually spread to surrounding oil-producing countries further supported oil demand. This contrasts with the previous day’s oil prices, which had dropped to their lowest level in two weeks.
Naeem Aslam, Chief Investment Officer (CIO) of Zaye Capital Markets, said, "Traders need to focus on one thing," referring to "the Israeli military’s ground operations in Palestine." He added, "This will ignite another level of anger among Arab countries." He continued, "All of this means significant risk for the oil prices that traded low throughout the week, especially as traders are likely to be indifferent and complacent about this situation."
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