Oil Prices Soar Amid Turbulence
At around 9:30 GMT, the two big boys in the oil world—Brent and WTI—jumped by about 1 % each. It’s a surprising pick‑up after last week’s heavy losses.
Why the Bell‑Ringing?
While traders are basking in the gains, there’s a looming cloud: the war in Gaza could turn a bit darker and lead to a full‑blown ground offensive in Rafah. Oil folks fear a supply wobble if the conflict expands.
Other Factors Helping the Price Parade
- Chinese Services Sector: Caixin/S&P Global PMI for April stayed strong at 52.5, marking the 16th consecutive month of growth. China’s appetite for oil remains robust.
- Eurozone Investor Confidence: Sentix reported the best investor mood in two years, with a –3.6 reading that’s a bright spot. German sentiment turned sunny for the first time since March 2022.
- US Treasury Yields: They’re dropping, nudging toward possible rate cuts—a thumbs‑up for gasoline prices.
What’s the Bottom Line?
If the ceasefire talks in Gaza falter, the oil market could face a reality check as a full‑scale operation looms. But hope isn’t all lost; the coming days are pivotal—either a calm chapter or a wild escalation. In the meantime, China’s robust services and the Eurozone’s optimism keep the prices on a steady run.
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