Israel says it is 'at war' after Hamas surprise attack
How this could affect the Oil & Stock Market, let’s find out………
Israel says it is 'at war' after Hamas surprise attack
Israel and Palestine at War, feels very eerily familiar but you can’t quite put a finger on it but let’s start with the current situation
Prime Minister Benjamin Netanyahu (above) said Israel is "at war" after Gaza militants launched a surprise attack Saturday morning, firing thousands of rockets and entering Israel by land, sea and air using paragliders.
At least 300 people have died and thousands of others are wounded in Israel, officials said. Fighting continued through the day, and a fresh round of rocket attacks hit Tel Aviv and other areas on Saturday evening.
In Gaza, at least 232 Palestinians have died and more than 1,600 are wounded, the Palestinian health ministry said. Israel launched air strikes on the territory while its forces clashed on the ground with Hamas fighters.
Hamas claims it has captured dozens of Israelis, including soldiers, and videos authenticated by CNN show some of the dramatic seizures. Israel's military has acknowledged hostages were taken.
I’ve read countless articles on who started this attack from Israel to Hamas, this is not the point of this short article, the point is to look at how it effects the investment side of things with respects to the conflict that’s happening between the Israeli and Palestinian Hamas, government
It’s tragic and sad that fighting continues but with that said this seems very familiar because it could have and effect on the oil industry. Here is some key points from
The overall impact on oil markets from the attack on Israel by Palestinian militants Hamas will likely be limited, provided the conflict does not escalate further, energy experts said.
"We may see a knee-jerk surge in crude prices when markets open on Monday," Vandana Hari, CEO of Vanda Insights, told CNBC.
Both Israel and Palestine are not major oil players, but the conflict sits in a wider key oil producing region, analysts said, warning that it has the potential to conflagrate further
The good news from an investment standpoint is neither of the two countries are major players in oil production so that is to the benefit of All
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Ok, back to this All. Crude oil prices could see a spike on Monday but the overall impact of the attack on Israel by Palestinian militants Hamas will likely be limited, energy experts are saying
That’s based on no other evidence of escalating tensions or violence between the two
I expect there will be some risk premium factored in as a default meaning prices will go higher due to potential volatility on Call Options in the Stock Market, until the Stock market is has concluded that the event is not going to set off a chain reaction and Mideast oil and gas supplies won't be affected
As I mentioned before Israel and Palestine are not major oil players, but the conflict sits in a wider key oil producing region
This conflict does not directly impact oil production or supply, but the region does have possible implications
Israel boasts two oil refineries with a combined capacity of almost 300,000 barrels per day. According to the U.S. Energy Information Administration (EIA), the country has "virtually no crude oil and condensate production." The Palestinian territories produce no oil, data from EIA shows below
(https://www.eia.gov/international/overview/country/PSE)
So basically they have no effect on oil prices and you should not be concerned
I say all of this to say that it’s not a 0% chance of conflict or oil prices being effected because nearly 50 years ago an Oil Embargo created issues for USA & others. This was on Oct 6th 1973. This development led to dangerously heightened tensions between the United States and the Soviet Union (allied with Israel and with the Arab states, respectively) and a second ceasefire was imposed cooperatively on October 25, 1973, to officially end the war
Global Crude oil have been depleted by months of production cutbacks by Saudi Arabia and Russia, which last month pushed Brent futures to almost $100 a barrel (Oil cost more)
So in case you’re wondering, this shouldn’t have an effect on the oil prices, hopefully this helps someone and sheds light on thinking outside the Norm, as it pertains to how macro economics and key developments have played in the past and present of the world
With that said please share, comment with feedback and like this post because it helps me more than you think
Monk
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