Israel-Iran conflict causing uncertainty in oil market, jacking up prices: Peter McGuire
Synopsis The escalating tensions between Israel and Iran are injecting significant uncertainty into the oil market, independent of OPEC's decisions. The Strait of Hormuz, a crucial energy transportation choke point, is under threat, potentially driving prices higher. Market analysts are closely monitoring the situation, with WTI currently over $74 and Brent around $75.25, anticipating further price increases. Peter McGuire, CEO, Australia, Trading.com, says the ongoing conflict between Israel and Iran introduces uncertainty into the oil market, independent of OPEC's decisions. The situation's magnitude and impact necessitate constant market reevaluation. Currently, WTI is over $74 and Brent is around $75.25, with potential for further price increases by the next trading day.
ADVERTISEMENT What is your take on crude oil because with the tensions rising between Iran and Israel, we are already seeing a 10% jump. But this particular attack impacts the supply chain as it impacts one of the key routes for the supply of the oil. How do you see the situation escalating and its impact on the oil prices?
Peter McGuire: There's a couple of things. The Strait of Hormuz is an integral part, a true choke point when it comes to energy transportation and the impact that that can have across the whole Persian Gulf. So, the market is up now as you said 9-9.5%. We have got to see how this moves forward over the next couple of days and whether there was to be any form of interaction from the US because they have got many carriers around that sort of area and whether they were to be involved or if there is any chance as far as production not being able to be shipped through there. That choke point remains shut and that is going to force prices much higher. That is the issue we face at the moment. It is the degree of uncertainty.
Give us a sense of these elevated crude prices that we are seeing right now. Would OPEC step in sooner or later in terms of some price correction now because we have had the OPEC secretary say a few days ago that he is not seeing a peak? Could the oil market peak given the sharp uptick that we have seen this morning?
Peter McGuire: I am not sure how much further it can go, as far as it depends on the escalation in the conflict between Israel and Iran. OPEC has got its own mind. They would not have been aware of this to play out and the magnitude that it has and the impact that it has. So, every hour that rolls forward is another new lens that you have got to look at the markets with.
At the moment, we are at $74 plus for WTI and $75-and-a-quarter or $75-and-a-third for Brent. We could be at that by Monday morning or this time tomorrow, I should say, when the market's shut in New York,we could add a few dollars to where we are at the moment.
(You can now subscribe to our ETMarkets WhatsApp channel)
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share
Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained
Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms
Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips
L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first?
Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more
SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders
API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading
Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains
Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains
NEXT STORY
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
34 minutes ago
- Indian Express
Flyover connecting North Delhi and Ghaziabad: PWD to carry out feasibility study
To provide smooth connectivity between North Delhi and Ghaziabad, the Public Works Department (PWD) has proposed an integrated transit corridor development project. The department has invited bids to carry out a feasibility study for constructing a 6-km-long elevated corridor under this project, starting from Nanaksar Gurudwara T-Point in Northeast Delhi's Sonia Vihar Pusta Road to the Delhi-UP corridor near Tronica City. According to officials, the stretch currently falls under the jurisdiction of the Irrigation and Flood Control Department (I&FC), but as the PWD is the expert agency executing roads and flyovers, the department will hire an agency to carry out the feasibility study. Currently, the 6-km-long stretch is plagued by encroachment by the roadside and traffic snarls caused by vehicles, e-rickshaws, and pedestrian footfall. 'It was a long-pending request from residents… development of an elevated corridor will ease traffic movement for commuters and residents… The stretch passes through a densely populated area, which also has a market… Also, there are trees on both sides of Pushta Road… a Delhi Jal Board (DJB) underground water pipeline also falls on the route… all of this will be taken into consideration during the study,' said officials. The DJB's Sonia Vihar treatment plant is located near the alignment of the proposed flyover. In April, PWD Minister Parvesh Sahib Singh, along with Tourism Minister Kapil Mishra, inspected the stretch and announced the project. Officials said it is likely to cost approximately Rs 500 crore.
Time of India
38 minutes ago
- Time of India
‘Easy Jamabandi' to tackle land record typos, offer real-time tampering alerts in Punjab
Chandigarh: The Punjab govt's 'Easy Jamabandi' initiative now allows landowners to initiate 'fard badar' (corrections for clerical errors) on the portal and also file online complaints regarding 'harassment or corruption' by patwaris or tehsildars. The new system further provides subscribers, particularly NRIs or those who have moved to cities, with real-time updates on their revenue records, ensuring they are promptly alerted to any unauthorised changes. Elaborating on the new system, Anurag Verma, additional chief secretary, revenue, said on Friday, "Fard badar has long been a major source of corruption. If a landowner's name is misspelled in land records, it requires a fard badar to correct it. A small typographical error by a patwari can cause significant issues, especially when the landowner tries to sell their property. They often have to trace old jamabandis to verify their correct name. Over 60,000 applications for fard badar are received each year. Now, the system has been fully reformed and digitised." Meanwhile, the state govt is in the process of replacing Urdu land record terms like 'fard badar' with Punjabi names. The primary purpose of 'fard badar' is to rectify minor, clerical, or accidental errors that may have occurred during the recording of land information by revenue officials such as patwaris. Speaking about the new option to subscribe to land records, Verma said, "Illegitimate changes are often made in revenue records without the landowner's knowledge, leading to prolonged litigation to correct the records. To address this, a 'Subscribe to Land Records' feature has been introduced for an annual fee of Rs 500 per khewat (the account number identifying landowners). Subscribers will receive alerts via WhatsApp or email whenever a change is proposed in their Khewat, allowing them to raise objections in time. This will help prevent fraud and significantly reduce litigation." Revenue minister Hardeep Singh Mundian added that tehsildars have recently been transferred across the state as part of the ongoing effort to check corruption. The online system was another step in the direction, he said. Asked about the necessity for NRIs to appear before revenue officers despite the online application, Verma said the option of video conferencing to exempt physical presence will be explored. To another question, he said that revenue officers still have a role in the digital system, but the chances of corruption had been removed. The 'Easy Jamabandi' portal was launched by Punjab chief minister Bhagwant Mann and AAP supremo Arvind Kejriwal in Amritsar on Thursday with features such as getting Jamabandi via WhatsApp, online mutation and correction of land records. The revenue processes have been made time bound and as of Friday, there were 1,800 cases of intkal (change in ownership and title of the land) were pending. Varma said the complaint against patwari, or tehsildar can be made in reply to a WhatsApp message without physically going to the deputy commissioner. "Most applicants are reluctant to make complaints in person. Now they can do so by clicking on a link they would receive on WhatsApp," he said. BOX: REVENUE SERVICES AVAILED ANNUALLY Mutation: 8 lakh (6 lakh on basis of registration deeds and 2 lakh of inheritance). Entry of rapat (court, order, loan): 2 lakh Fard Badar (correction in clerical effort): 60 thousand BOX: LAND RECORDS OF 150 VILLAGES YET TO BE DIGITISED Verma confirmed that land record of 150 villages, mostly located in the bigger cities, were yet to be digitised and the exercise would be completed in next 2-3 months. "The applications can still filed online but jamabandis cannot be sent on WhatsApp in such cases," he said. BOX: WHEN MOHAN SINGH BECAME SOHAN SINGH Citing an example from his village, revenue minister Gurdeep Singh Mundian said his friend Mohan Singh's name in the land records was changed to Sohan Singh by the patwari without his knowledge. "A fake Aadhar card was used to get the land registered in the name of one Sohan Singh and revenue records of the past 15 years were also changed. The police later unearthed a scam worth Rs 1.50 crore. The digital system will rule out delays and corruption in collusion with the patwaris and kanugoes,' he said. MSID:: 121831753 413 | Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
Time of India
38 minutes ago
- Time of India
Centre clears Rs 193 crore for women's hostel, drinking water at Karnataka's Narasapura iPhone facility
Bengaluru: The Centre has sanctioned Rs 193 crore under the State Capital Investments Scheme for constructing working women's hostels and water facilities supporting iPhone contract manufacturer Tata Electronics in Kolar district's Narasapura industrial area. Tata Electronics acquired Wistron, a Taiwanese contract manufacturer, for $125 million two years ago. T he Karnataka govt approved the detailed project report and allocated funds for water supply infrastructure in the Narasapura industrial zone and neighbouring villages. According to sources, the accommodation facilities will house 6,000 women workers, with the project completion scheduled in 18 months. "In Narasapura industrial area, Tata Electronics (Wistron) is setting up a large manufacturing unit, where about 18,000 women workers are expected to be employed. Therefore, to address the drinking water requirement of the women workers and surrounding villages, the proposed drinking water scheme is necessary. In the absence of such a project, there will be difficulty in operating women-centric industrial units. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo After reviewing this, the proposal is approved," the state govt's notification said. An email sent to Tata Electronics didn't elicit a response till the time of going to the press. The central govt has already released Rs 127 crore to Karnataka's SNA (Single Nodal Agency). Karnataka industries minister MB Patil told TOI that the initiative is aimed at encouraging greater participation of women in the workforce. As part of the state's latest industrial policy, 10-15% of industrial areas have been earmarked for developing housing facilities, with a focus on supporting women to remain in the workforce. Recently, Patil took to social media to say Apple's contract manufacturing partner Foxconn will start production of iPhones at Devanahalli in June. Foxconn's 300-acre Devanahalli unit, within the Information Technology Investment Region (ITIR), is being established with an investment of Rs 21,911 crore. It is expected to be the largest iPhone manufacturing facility outside China. The Economic Times reported recently that the Foxconn facility will prioritise accommodation for its female workforce, with dormitories for 30,000 employees. Initial govt approval indicated 50,000 job opportunities. Karnataka maintains one of India's highest female labour participation ratio with a 31.5% female work participation rate, according to the 2021-22 Periodic Labour Force Survey. The state's workforce comprises 41% in agriculture and 21.5% in industry. Rural women predominantly work in agriculture, while urban women work in manufacturing and services, as per IWWAGE's report. Recent statistics from Sumita Dawra, labour ministry secretary, showed that the women worker population ratio increased from 22% in 2017-18 to 40.3% in 2023-24, while the female labour force participation rate rose from 23.3% to 41.7% during the same period. Follow more information on Air India plane crash in Ahmedabad here . Get real-time live updates on rescue operations and check full list of passengers onboard AI 171 .
