Intense fighting is underway in a region that holds much of the world¡¯s petroleum resources. Yet, after a few days of anxiety following the bloody Oct. 7 raids by Hamas militants in Israel, energy markets have been slumping. Brent crude, the international oil bench mark, is now selling for about $80 a barrel, cheaper than when the fighting started.
Why aren¡¯t prices higher? A main reason, analysts say, is that the fighting, no matter how vicious, has produced little disruption to petroleum supplies, leading traders to conclude that there is no immediate threat.
¡°While traders realize there is an increased risk, that hasn¡¯t led to a lot of precautionary buying,¡± said Richard Bronze, head of geopolitics at Energy Aspects, a London-based market research firm.
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