Photo / 123rfMiddle East troubles and oil price shocksSince the conflict in the Middle East broadened to include Lebanon and Iran, oil prices have spiked about 10%. If that’s the case, we could see oil prices slide back as the rest of the conflict - as terrible as it all is - has less direct impact on oil supply. If a serious and sustained conflict breaks out between Iran and Israel, there is a risk oil prices could spike back above US$100. Broadly, oil prices have been coming down over the past year, mostly due to subdued demand, with both the US and Chinese economies being sluggish. As these economies rebound we should expect oil prices to rise, regardless of the Middle East situation.

Source: New Zealand Herald October 09, 2024 04:24 UTC