Oil prices remained relatively stable on Monday despite heightened tensions in the Middle East following a rocket attack in the Israeli-occupied Golan Heights. While the attack, attributed by Israel to Hezbollah, has raised fears of escalating conflict in the region, actual supply disruptions remain limited. This has tempered any potential price increases due to geopolitical concerns.
However, weak Chinese economic data and decreased fuel oil imports continue to weigh on prices, indicating potential demand issues. Further uncertainties are added by the technical problems at the Dangote oil refinery in Nigeria, which is reselling cargoes of crude oil.
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The disputed outcome of the recent Venezuelan election also contributes to the volatile market landscape. The U.S. has previously stated its intent to “calibrate” its sanctions policy towards Venezuela based on the election’s outcome, adding another layer of uncertainty to the already complex situation.
Overall, the market remains cautious, with the impact of geopolitical events tempered by ongoing demand concerns. The situation is volatile and subject to change based on future developments in the Middle East and global economic conditions.