Oil Prices Soar: Middle East Tensions Ignite Global Energy Crisis

In the trading session on September 24, the price of US light sweet crude oil (WTI) increased by 1.19 USD (1.7%) to 71.56 USD/barrel, while the price of Brent oil increased by 1.27 USD (1.7%) to 75.17 USD/barrel. Oil well in Panjin, Liaoning province, China on January 1, 2024. (Photo: THX/TTXVN)

In the trading session on September 24, world oil prices increased by about 2% to a three-week high, after China, the world’s largest crude oil importer, announced a monetary stimulus package.

In addition, escalating conflicts in the Middle East also make the market worried about the risk of disruption of oil supplies in the region.

At the close of this session, the price of US light sweet crude (WTI) increased by 1.19 USD (1.7%) to 71.56 USD/barrel. Meanwhile, the price of Brent oil increased by 1.27 USD (1.7%) to 75.17 USD/barrel, marking the highest closing price of Brent oil since September 2.

Claudio Galimberti, global market analyst at energy research firm Rystad Energy, said the announcement of the Chinese government’s largest stimulus package since the COVID-19 pandemic, along with the sudden increase in geopolitical tensions in the Middle East, were factors that dominated the oil market.

The People’s Bank of China (PBoC, the central bank) has announced its biggest stimulus package since the COVID-19 pandemic to pull the economy out of deflation and meet the government’s growth target.

However, analysts warn that the world’s second-largest economy still needs more support measures to achieve its goals.

The Organization of the Petroleum Exporting Countries (OPEC) has raised its forecast for global oil demand in the medium and long term, highlighting India, Africa and the Middle East as the countries and regions leading demand growth.

In the United States, the world’s largest oil consumer and producer, some energy companies have halted production despite forecasts that Hurricane Helene may not hit most of the western and central Gulf of Mexico’s production areas.

In this session, the increase in oil prices was limited as statistics showed that in September, US consumer confidence recorded the biggest drop in three years amid growing concerns about the labor market./.