Middle East Conflict Drives Oil Prices Above $75

Russian Deputy Prime Minister Alexander Novak stated that oil prices have surged due to fears of a potential supply decline from the Middle East conflict. Despite a previous drop below $70 a barrel, the prices have rebounded above $75 as markets react to the instability in the region.

Russian Deputy Prime Minister Alexander Novak said on Wednesday that oil prices have increased as markets do not rule out a decline in oil supply due to the conflict in the Middle East.

In televised comments after a meeting of top OPEC+ ministers kept oil output policy unchanged, including a plan to start raising output from December, Novak also reiterated that oil prices were already factoring in the conflict. Oil prices dropped below $70 a barrel in September for the first time since 2021, but have since rallied above $75 on concerns Iran's military attack on Israel could disrupt output from the region.

"The conflict itself in the Middle East, on the whole, was already partly factored in by the price," Novak said. "The market reacts, first of all, to the fact that supply on the market may decrease as a result of a conflict or military action," he added.