NewsCrude Oil Prices Climb Following Terrorist Attack in Russia
Crude Oil Prices Climb Following Terrorist Attack in Russia
4:11 PM EDT, March 25, 2024
Crude oil prices on the New York fuel exchange are experiencing an uptick in response to a terrorist attack in Russia, stirring concerns about potential disruptions in the supply of raw materials.
A barrel of West Texas Intermediate crude is currently trading at $81.05 on the NYMEX in New York, marking a 0.52 percent increase. Meanwhile, Brent crude on the ICE is priced at $85.83 per barrel.
Investors are alarmed by the surge in geopolitical risks following a devastating terrorist attack in Russia, which resulted in the loss of over 130 lives.
Russia's Investigative Committee reported that the death toll from the terrorist attack at the Crocus City Hall concert venue in Krasnogorsk, located just outside Moscow, has climbed to 137. This figure represents an increase from the 133 fatalities initially reported, with 180 individuals also injured.
The assault on the Crocus City Hall venue last Friday involved gunmen opening fire on the audience and detonating explosive devices, leading to a fire that caused the building's roof to collapse.
The Islamic State has claimed responsibility for the incident, though Russian President Vladimir Putin has insinuated Ukraine's involvement in the attack.
In other news, China's government has pledged to bolster the economy, with Premier Li Qiang announcing plans to increase economic support. This initiative aims to stimulate growth and consequently enhance the demand for raw materials, including crude oil.
"Currently, the balance between supply and demand in the oil markets appears stable, with countries like Saudi Arabia possessing spare production capacity. However, we must remain vigilant for potential supply disruptions," noted Stefano Grasso, a senior portfolio manager at 8vantedge Pte in Singapore.
He further remarked on the surprisingly low prices of oil, considering the favorable macroeconomic outlook and the ongoing conflicts near oil-producing regions, such as the Russia-Ukraine and Israel-Hamas wars.
Meanwhile, analysts at Goldman Sachs Group Inc. predict a rise in commodity prices in 2024, driven by lower credit costs from central banks, which is expected to boost demand in both the industry and consumer sectors.
This positive forecast is echoed by recent statements from other market analysts, including those from Macquarie Group Ltd. and Carlyle Group LP.
Notably, crude oil is poised to register its third consecutive monthly price gain. This trend is supported by OPEC+ member countries' ongoing production limitations and the United States increasing sanctions on Russian oil imports due to its military actions against Ukraine.
