Tensions mount between Israel and Hezbollah
August 26, 2024
Energy prices are higher to start out this new week as there was a lot of missile and bomb activity between Israel and Hezbollah over the weekend. Prices opened higher as Sunday night trading began and has added to the upside since.
Israeli warplanes fly over southern Lebanon taking out thousands of Hezbollah missile launchers in what was called a preemptive strike. Israel’s assault was based on intelligence that Hezbollah was about to fire thousands of missiles at northern Israel.
This latest round of attacks in the Middle East will be the news of the day and energy prices have already added to the upside and will now wait to see where things evolve from here. The unrest in the Middle East has been going on for what seem like a long time now and we have almost grown tired of hearing about it and that Iran will retaliate. This latest round of missiles and bombs bring the question to light again or will this time actually disrupt oil production or supplies.
The production of Libyan oil is also in the news as report say the civil unrest there has the eastern party saying all oil production and exports will be halted. This is news is also supportive to prices.
On Friday at the Federal Reserve’s annual symposium in Jackson Hole, Wyoming Federal Reserve Chair Jerome Powell, made it clear the Fed will cut interest rates next month. Traders have fully priced in a 0.25% cut at the next policy meeting in September.
The IEA is forecasting that energy inventories are moving toward a time of surplus barrels on the first quarter of 2025.