INSUBCONTINENT EXCLUSIVE:
Despite ongoing tensions in the Middle East, the oil market experienced a notable decline on Friday without significant bolstering of oil
This was largely due to a weak demand forecast.West Texas Intermediate (WTI) for March saw a 0.95% drop, settling at $73.25 per barrel
the Intercontinental Exchange (ICE).Over the week, WTI experienced a slight rise of 0.78%, while Brent increased by 0.34%.Capital Economics
highlighted several factors influencing the market
These included attacks by Houthi rebels in the Red Sea, U.S
reactions, Iran tensions, and the Israel-Hamas conflict.Oil Market Dips Amid Middle East Strife and Demand Concerns
(Photo Internet reproduction)However, these elements did not significantly impact oil prices
The consultancy noted that weak global demand, increased supply from other regions, and a low likelihood of a broader conflict are curbing
investor enthusiasm.Berenberg Bank offered insights into the Red Sea situation
trade traverses the Red Sea
Currently, companies are opting for the longer, costlier route via the Cape of Good Hope.This shift is a response to the ongoing situation
and allies work to stabilize the region.TD Securities presented a different perspective
The firm believes that current energy prices have not fully accounted for increasing geopolitical risks.According to the bank, oil prices
could be substantially higher if not for the generally pessimistic outlook on commodities.This perspective suggests that market dynamics are
complex, with various factors influencing price movements.
