(BFM Bourse) – Oil prices accelerated upwards this Tuesday after an upsurge in tensions in the Middle East. Positive macroeconomic indicators are also fueling the buying trend in oil. This particularly benefits the heavyweight of the coast, Totalenergies.
Oil prices remain on an upward trend this Tuesday driven by geopolitical risks which are likely to reawaken fears about the supply of black gold.
The June contract for a barrel of North Sea Brent rose 1.8% to 89.03 dollars per barrel this Tuesday, after having come close to 90 dollars a little earlier in the morning. A barrel of WTI listed in New York crossed $85 for the first time since October, and is now up 2% to $85.38. Over five days, oil contracts gained more than 5% to now reach the highest level of the year.
Deutsche Bank’s Jim Reid attributes the rise, in part, to “renewed concern over the Middle East conflict following an Israeli strike on an Iranian consulate in Syria.” These strikes attributed to Israel by the Syrian Ministry of Defense took place on Monday. According to AFP, Israel has not confirmed its responsibility.
The market now fears that the conflict could spread to other regions of the Middle East. This potential flaring up of the conflict could therefore have repercussions on the oil supply of producing countries such as Iran and Iraq.
Totalenergies at historic high
Positive macroeconomic data in China and the United States are also boosting oil prices. Manufacturing activity in the world’s second-largest economy grew in March, the strongest in six months. A resumption of activity in Chinese factories heralds more sustained demand for black gold.
Investors were also able to react to the publication on Monday of an indicator pointing to the recovery of manufacturing activity in the United States for the month of March as well. For the first time in sixteen months, the ISM manufacturing activity index returned to growth at 50.3 points compared to 48.1 points in February. The threshold of 50 separates a contraction from an expansion of activity.
On the Paris Stock Exchange, oil and oil stocks are benefiting from the rise in black gold prices. Heavyweight on the Parisian coast, Totalenergies rebounded by 3.7% to 65.83 euros, after hitting a historic high of 66.06 euros at 2:34 p.m. Vallourec progressed by 2.2% when Technip Energies limited its gains to 0.8% this Tuesday.
Sabrina Sadgui – ©2024 BFM Bourse