Sunday, August 3, 2025

The Truth Banishes Fear!

Oil Prices Climb After Drone Attack Kills Three U.S. Troops

The New Diplomat
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The Hidden Signals in Oil Markets

Asia’s oil demand is growing faster than major agencies forecast, led by India and Southeast Asia’s emerging economies. China is rapidly restructuring its supplier base, favoring Brazil while cutting ties with U.S. energy. Kazakhstan’s refining expansion and chronic overproduction raise major questions about its future in OPEC+. I’ve been following the oil market closely this…

Oil Falls Below $70 as Sentiment Sours

A poor U.S. jobs report led to a broader sell-off on Friday, with leading stock indices falling from record highs. Friday, August 1st, 2025 Buoyed by Trump’s Russia threats and news of Indian state refiners curbing purchases of Russian crude, crude oil futures have been trending above $70 per barrel throughout the week, settling on…

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By Irina Slav

Crude oil prices started the week with a gain following a drone attack in Jordan that killed three U.S. military servicemen.

The news added to the bullish momentum of continuing Houthi strikes on ships in the Red Sea to push Brent crude well over $80 per barrel, with the benchmark close to touching $84 in midmorning trade in Asia.

West Texas Intermediate moved closer to $80 per barrel following the news of the deadly attack that led many to brace up for further escalation in the latest Middle Eastern conflict.

“We believe the death of three U.S. service members today in Jordan marks a critical inflection point in the ongoing conflict in the Middle East and raises a specter of a more substantial U.S. involvement in the war,” RBC Capital Markets’ Helima Croft wrote in a note, as quoted by Reuters.

“It does appear that even with any softening we’re seeing to demand, geopolitics is shaping up so that oil prices could have more upside risk in them,” Mizuho Bank Asia chief economist Vishnu Varathan told Bloomberg.

Vandana Hari of Vanda Insights, on the other hand, noted that the price rise could have been more substantial: “The question is, why have we not seen Brent shoot up toward $90 or higher?” she told Bloomberg. “There would need to be a direct hit on a Middle Eastern oil cargo or oil production infrastructure for prices to skyrocket.”
Indeed, there was a Houthi strike on a fuel tanker passing through the Gulf of Aden last week but while it helped prices go higher, it was not much higher. But this could yet change.

“With oil tankers linked to the U.S. and UK now under threat of attack, the market is likely to reprice the risk of disruptions,” analysts from ANZ said in a note quoted by Reuters.

NB: Irina Slav wrote this article for Oilprice.com

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