Crude oil prices continued to fluctuate, declining after previous record highs due to the raging war in the Middle East.
Markets are worried that if the conflict escalates, it could hurt Middle East supplies and worsen the expected deficit for the rest of this year.
Oil analysts said that the raging conflict in the Middle East has amplified the problems of oil supply disruptions, especially in light of the prospects for the involvement of both the United States and Iran in this conflict, and Iran has finally been a contributor to the additional supply this year.
Analysts said that retailers are likely to increase the upward trend of crude oil, as fears of supply disruptions may provide support in the near term, pointing out that oil prices have reversed course and compensated for their heavy losses over the past two weeks.
Analysts pointed out that about 73 percent of retailers use crude oil for the long term and most of them are still biased towards the upward trend, which means that prices may not fall in the future.
They said that talk of peak global oil demand is likely to dominate the 28th Conference of the parties, which will be held from November 30 to December 12 in Abu Dhabi.
Sevin Schimmel, director of the German company “VG industry”, said that concerns about high inflation have diminished in the oil market, and she is also concerned about the possibility of spillover of the Israeli-Palestinian conflict to the rest of the Middle East.
He pointed out that “OPEC” raised its forecasts for demand in the medium and long term in its annual forecasts, where it stated that investments of about 14 trillion dollars may be needed to meet demand, and stressed that it sees that demand is higher than expected before the pandemic, and the group also doubled its belief that oil should form part of the energy transition
