Price of oil

Equities retreated on April 15 after Iran ramped up Middle East tensions by launching a barrage of missiles and drones at Israel over the weekend, fuelling fears of a wider conflict in the volatile region.

However, analysts said there was hope among traders that the crisis could be contained.

That sliver of optimism helped drag oil prices lower.

Oil prices have surged due to renewed concerns about the Middle East conflict. Brent crude futures increased by 0.32% to 90.80 USD per barrel, while American WTI crude rose by 0.3% to 86.50 USD per barrel. This comes amid fears of an Iranian strike on Israel following verbal threats by Iran in response to an Israeli attack on an Iranian diplomatic compound in Syria.

Global food prices rose in March, the first increase since July, pulled higher by cooking oil prices despite the cost of grains continuing to ease, the U.N.'s Food and Agricultural Organization has said.

The FAO's overall Food Price Index climbed 1.1 percent over the month to stand at 118.3 points in March 2024. On an annual comparison it was 7.7 percent lower.

The United States has urged Ukraine to cease its attacks on Russia's energy infrastructure, citing concerns over potential repercussions on global oil prices and retaliatory actions. The call for restraint comes amidst reports of intensified drone strikes targeting refineries, terminals, and storage facilities in western Russia.

In the oil market, the upward trend continues at the beginning of the new week, with prices rising to nearly 5-month highs due to increasing geopolitical risks related to supply disruptions. This surge is driven by a series of Ukrainian drone attacks on Russian refineries, reported by Reuters.  

Consumers may have noticed a slight uptick in fuel prices over the past month, with gasoline and diesel seeing modest increases in Bulgaria. According to data from the "Fuelo" platform, gasoline prices rose by 3 cents per liter (1.14 percent), while diesel saw a slightly larger increase of 6 cents per liter (2.21 percent).

Moscow, Riyadh and several other OPEC+ members on Sunday announced extensions to oil production cuts first announced in 2023 as part of an agreement among oil producers to boost prices following economic uncertainty.

Brent crude oil prices rose two percent to $78.94 a barrel after the escalation of the situation in Yemen.

On Friday night, the US and Britain launched strikes against Yemeni Houthi targets in response to their attacks on international ships in the Red Sea. US West Texas Intermediate crude oil futures also rose in price.

Oil futures continued trading near two-week highs after a surge triggered by escalating ship attacks in the Red Sea, prompting major shipping companies to divert routes and heightening concerns over global oil supply.

The war between Israel and Hamas could trigger price shocks for raw materials such as oil and agriculture products if the conflict escalates across the Middle East, the World Bank warned in a report yesterday.

Oil has already risen six percent since the latest round of fighting, sparked when Hamas militants from Gaza stormed southern Israel.