ANKARA, Oct 21 — Oil prices increased on Monday amid news reports that Israel is preparing a major attack on Iran in response to Tehran’s missile attack on October 1, reported Anadolu Agency.
The international oil benchmark of Brent crude increased 0.4 per cent to US$73.13 per barrel at 9.56am local time (0656 GMT), up from the previous session’s close of US$72.87.
The US benchmark West Texas Intermediate also rose by 0.5 per cent to US$69.09 per barrel, compared to US$68.78 at the prior session’s close.
Tension between Israel and Iran soared after recent attacks, pushing prices higher.
According to the Organisation of Petroleum Exporting Countries (OPEC) monthly report, Iran increased its oil production by 21,000 barrels per day to 3.31 million barrels, the highest increase among OPEC members in September.
The possibility of Israel attacking the country supported the upward price movement, feeding the supply concerns among market players.
In addition, analysts expect the contraction in the real estate sector and housing market in China, the world’s biggest oil importer, to lessen.
China announced a 25-basis point reduction for one and five-year loan interest rates, which serve as the benchmark interest for corporate loans and real estate loans.
The interest rate decision aims to revive the real estate and credit markets against the contraction in the real estate sector and to ease the burden on individuals and businesses.
The decision is expected to increase optimism regarding future incentive measures in the country and support the recovery of oil demand in China.
— Bernama
