International oil prices surged more than 2%. Amid renewed military tensions in the Middle East, this was influenced by the increased likelihood of a delay in production increases by OPEC member countries and non-OPEC oil-producing countries such as Russia, collectively known as OPEC Plus (OPEC+).
On the 3rd (local time) at the New York Mercantile Exchange, the near-month January delivery West Texas Intermediate (WTI) crude oil closed at $69.94 per barrel, up 2.70% from the previous session. WTI recorded its highest closing price since the 22nd of last month. The global benchmark Brent crude oil for February delivery closed at $73.62 per barrel, up 2.49% from the previous session. Brent crude rose for the first time in three trading days.
Although the pro-Iran armed group Hezbollah in Lebanon and Israel entered a temporary ceasefire on the 27th of last month, both sides continued exchanging attacks using rockets, raising concerns that the ceasefire, achieved after 13 months, could collapse. It was reported that some local residents fled again. On the same day, the Israeli military announced that it had killed Salman Nemer Jama, a senior Hezbollah liaison, in Syria.
Additionally, OPEC+ is reportedly discussing postponing the gradual production increase plan of 180,000 barrels per day, scheduled to resume in January next year, until the end of the first quarter of next year. OPEC+ is expected to decide how much to delay the production increase at the meeting scheduled for the 5th. Previously, concerns about oil demand had grown due to weak economic indicators from China, the largest oil consumer, and with forecasts of oversupply next year, there were expectations that oil prices would decline.
Goldman Sachs stated in a report, "Considering compliance with production cuts by Russia, Kazakhstan, Iraq, and others, the lowered Brent crude price level, and signs from media reports, OPEC+ production cuts are expected to be extended until April (next year)."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
