“Saudi is key to mid-east politics and oil prices”
Oil is broadly holding the gains that came through after the weekend attacks on Israel. Bill Blain from Shard Capital says Saudi Arabia is key to the region and so to oil market pricing.
The recent attacks by Hamas on Israel
The recent attacks by Hamas on Israel have caused the price of oil to go up. This is because people are worried that the conflict could disrupt the supply of oil. However, the increase in price is mainly because of the risk of more violence, not because there is actually less oil available. This is important because it could affect the relationship between Saudi Arabia and Israel.
Saudi Arabia
Saudi Arabia is a big player in the oil market. They have to decide if they want to keep supporting Russia's effort to raise oil prices or if they should bring them down to avoid more conflict. This decision is crucial because Saudi Arabia is seen as the leader of the Arab world. If they make the wrong choice, they could upset other Arab countries. This is especially important because some people think Iran was behind the attack.
Oil prices
The market has been reacting to the situation. Oil prices went up a lot on Friday, but they went down a little bit today. Despite this, the prices are still higher than they were before the attacks. There are also concerns that the supply of oil could get tighter because of the situation. As people watch what happens next, the focus is on the people who are suffering because of the attacks. Families and individuals are experiencing losses and it is a tragic situation.
The supply of oil
Overall, the recent attacks in the Middle East have caused oil prices to go up. The main reason for this is the fear that the conflict could disrupt the supply of oil. Saudi Arabia, as a key player in the oil market, has a difficult decision to make about whether to support Russia's effort to raise prices or bring them down to avoid more conflict. The market has reacted to the situation, with prices going up and then slightly down, but still higher than before the attacks. The focus now is on the people who are suffering because of the attacks.
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