Search Mark
Home / Industry Dynamics

Oil Prices Surge Amid Chinese Economic Growth and Middle-East Tensions 


Today’s News

Oil prices surged today as Chinese economic data showed improvement, while tensions between Israel and Hamas escalated, driving concerns about supply disruptions. 

Oil prices rose on Friday, supported by growth in China’s economy, while negotiations aimed at easing tensions between Israel and Hamas proved unsuccessful. 
Image Source: CNBC 

Oil prices climbed on Friday, continuing their upward trend on signs of a strengthening Chinese economy and escalating tensions between Israel and Hamas. Brent futures rose by 37 cents to USD 84.24 a barrel, while U.S. West Texas Intermediate crude grew by 41 cents to USD 79.64.  

The increase followed a previous session where oil prices reached a one-week high, buoyed by rising crude oil imports in China and market perceptions of a cooling U.S. job market possibly prompting interest rate cuts. 

China’s economic rebound was underscored by its exports and imports returning to growth in April after a contraction in the previous month, signaling improved demand. “Ongoing signs of strength in demand in China should see the commodity market remain well supported,” noted ANZ Research. 

However, uncertainties loomed over the U.S. economy, particularly regarding inflation and interest rates. San Francisco Federal Reserve President Mary Daly expressed considerable uncertainty about future inflation trends while also hinting at possible interest rate cuts. Financial markets anticipated a potential easing cycle by the U.S. central bank starting in September. 

Meanwhile, the Middle East saw a dangerous escalation in tensions as Israeli forces intensified bombings in areas like Rafah. Palestinian residents reported airstrikes, while Israeli Prime Minister Benjamin Netanyahu dismissed U.S. President Joe Biden’s threats to withhold weapons if Israel continued its assaults on Gaza. 

Israel bombs Rafah following Biden’s warning regarding arms transfers 
Image Source: The Daily Beast
Israel bombs Rafah following Biden’s warning regarding arms transfers 
Image Source: The Daily Beast
Israel has instructed civilians to evacuate Rafah in anticipation of its 'limited' military operation. 
Source: BBC
Israel has instructed civilians to evacuate Rafah in anticipation of its ‘limited’ military operation. 
Source: BBC

Efforts to negotiate a ceasefire in Cairo ended without resolution, prompting Israel to proceed with planned operations in Rafah and other parts of the Gaza Strip. This combination of Chinese economic growth and Middle Eastern turmoil propelled oil prices upward, underlining the market’s sensitivity to geopolitical tensions and demand dynamics. 

Other News

Japan’s Consumer Spending Falls for 13th Straight Month 

Japan’s consumer spending dropped for the 13th consecutive month in March, falling 1.2% from a year earlier, posing challenges for policymakers aiming for sustainable economic growth. 

Calpine Explores Options Including USD 30 Billion Sale

Investment firms that took Calpine Corp private six years ago are exploring strategic options, including a potential USD 30 billion sale, IPO, or stake divestment, amid surging electricity demand. 

U.S. Weekly Jobless Claims Surge, Labor Market Slows 

The latest Labor Department report shows a significant increase in Americans filing for unemployment benefits, marking the highest level in over eight months and suggesting a slowdown in the labor market.  

Share to

Industry Dynamics

Nvidia’s Surge Boosts Nasdaq Amid Rising Bond Yields 

Nvidia's shares soared again on Tuesday, continuing their significant recent gains on an otherwise subdued day for the stock market. 

2024-5-29 | Industry Dynamics

Saudi Wealth Fund to Restructure Management Amid Budget Strain 

Saudi Arabia's USD 925 billion sovereign wealth fund, the Public Investment Fund (PIF), is planning a major management reorganization to address rising costs and enhance investment success. 

2024-5-28 | Industry Dynamics

Oil Prices Steady as Markets Await OPEC+ Meeting

Oil prices remained largely unchanged in early Asian trading on Monday as the market anticipated the upcoming OPEC+ meeting on June 2. Producers are expected to discuss maintaining voluntary output cuts for the rest of the year. 

2024-5-27 | Industry Dynamics