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01/08/24
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Crude Prices Flat as OPEC Maintains Oil Policy
On Thursday, crude prices changed little as investors evaluated producer group OPEC+’s decision not to change its output policy against the threat of a wider conflict in the Middle East after a Hamas leader was killed in Iran.
Brent crude futures, the global benchmark, fell 8 cents, or 0.1%, to $80.76 per barrel, while U.S. West Texas Intermediate crude dropped 20 cents, or 0.3%, to $77.71 per barrel.
In the previous session, both benchmarks’ most active contracts jumped around 4%.
On Wednesday, Ismail Haniyeh, Hamas’ leader, was killed in Tehran, the Iranian capital. With Israel killing Hezbollah’s most senior military commander in Beirut less than 24 hours earlier, fears increased that the 10-month war in Gaza between Hamas and Israel was moving to a wider conflict that may disrupt oil supply from the area.
BOK Financial’s senior vice president of trading, Dennis Kissler, said crude was continuing its current uptrend on news that Iran was meeting with regional representatives to consider a retaliation strike against Israel. He added that oil markets would not be disrupted severely until crude supplies were affected by the conflict.
A meeting of OPEC+ ministers has decided to keep oil output policy unchanged including a start to unwinding a layer of output cuts from October.
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