Oil prices fell by more than 1% – today, Monday – as investors remained cautious ahead of the Federal Reserve’s monetary policy meeting and manufacturing data in China this week, the impact of which outweighed the support derived from tension in the Middle East.
By 8:24 GMT, Brent crude futures fell 1.38% to about $88 per barrel, while West Texas Intermediate crude fell 1.5% to $84.26 per barrel.
Tina Ting, an analyst at CMC Markets, said, “Despite the escalation in the war between Hamas and Israel, a ground invasion is widely expected.”
She added, “The situation at the beginning of the week indicates a lack of escalation rather than a broader regional war, which caused a decline in oil prices.”
The two crude oil prices rose 3% last Friday at the close after Israel intensified its ground operations in Gaza, which raised fears of the expansion of the scope of the conflict in a region where a third of global oil production is concentrated.
Investors are awaiting the outcome of the US Central Bank’s monetary policy meeting on Wednesday, US job data and the earnings results of the large technology company “Apple”, looking for indications of any economic slowdown that may affect demand for fuel in the United States, the largest oil consumer in the world.
With the beginning of the 24th day of the war on GazaIsrael continued to bomb residential neighborhoods in parallel with its forces’ attempt to penetrate deep into the Strip.
As the massacres against civilians continued, the toll of the aggression rose to more than 8,000 martyrs, including 3,342 children, 2,062 women, and 460 elderly people, in addition to nearly 20,000 wounded, according to the Ministry of Health in Gaza.
Gold prices fell 0.7% after they had exceeded the $2,000 level in early trading, supported by demand for safe havens in light of the escalation of the conflict in the Middle East.
Gold prices in spot transactions reached $2,003.17 per ounce, before falling to about $1,994.3.
US gold futures rose 0.27% to $2,003.8 per ounce.
The bank is widely expected to keep interest rates unchanged and the focus will be on comments from Bank Chairman Jerome Powell.
A Reuters poll showed that inflation will continue to track the global economy next year, suggesting that interest rates may also remain higher for longer.
Although gold is considered a hedge against inflation, higher interest rates undermine appetite for the non-interest-bearing precious metal.
The Palestinian resistance was led by Izz al-Din al-Qassam Brigades -The military wing of the Islamic Resistance Movement (agitation)- An operation has been launched “Al-Aqsa Flood” On October 7, in response to the aggression of the occupation forces and Israeli settlers against the Palestinians and the continued raids of the blessed Al-Aqsa Mosque.