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Oil prices could reach 'uncharted waters' if the Israel-Hamas war escalates, the World Bank says

Oil prices could reach 'uncharted waters' if the Israel-Hamas war escalates, the World Bank says
SEE AT THE PUMP. PETER. YEAH. ERICA THERE바카라 게임 웹사이트™S JUST SO MUCH UNCERTAINTY. AND IF THE WAR ESCALATE TO INCLUDE COMPANIES THAT ARE MAJOR PRODUCERS OF OIL PRICES HERE AT THE PUMP WILL LIKELY SPIKE. TONIGHT. ESCALATING CONFLICT OVERSEAS, RATTLING GLOBAL MARKETS AND RAISING CONCERNS HERE AT HOME. THE PRICE OF CRUDE OIL JUMPING UP 4% IN JUST DAYS. AN INDUSTRY EXPERTS WORRY THE PRICE AT THE PUMP COULD ALSO CLIMB IF THE THEATER OF WAR GETS EXPANDED FROM ISRAEL AND THE GAZA TO OTHER PARTS OF THE MIDDLE EAST, YOU COULD SEE SOME REAL, REAL IMPACT. WHILE ISRAEL IS NOT A MAJOR OIL PRODUCER, PROLONGED TENSIONS IN THE MIDDLE EAST COULD HAVE A LONG TERM IMPACT ON THE OIL MARKET, ONE THAT HAS ALREADY SEEN INSTABILITY DUE TO THE WAR IN UKRAINE. ANALYSTS SAY THEY바카라 게임 웹사이트™RE ESPECIALLY WORRIED IF A MAJOR OIL PRODUCER LIKE IRAN BECOMES ACTIVELY INVOLVED. IT REALLY COULD ALTER THE CALCULUS FOR OIL SUPPLIES AND PRICES COMING OUT OF THAT REGION. I THINK THE INITIAL SPIKE IS JUST, YOU KNOW, EVERYONE FREAKING OUT. BUT YEAH, IT바카라 게임 웹사이트™S GOING TO GO UP. SO RIGHT NOW IT바카라 게임 웹사이트™S KIND OF UP IN THE AIR, BUT EVENTUALLY WE DO EXPECT SOMETHING TO CHANGE NEGATIVELY. THAT IS ACCORDING TO TRIPLE A, THE AVERAGE PRICE OF GAS IS $3.70 A GALLON AND HAS BEEN FOLLOWING NORMAL TRENDS OF FALLING AS WE HEAD INTO THE WINTER. THOSE IN OUR AREA HOPING IT STAYS THAT WAY IN THIS HORRIBLE SITUATION ENDS QUICKLY. WE HAVE TO ALWAYS THINK OF OTHERS IN OTHER COUNTRIES AND OUR RELATIONSHIPS WITH THEM. SO IF IT HAS TO HAPPEN, HOPEFULLY IT바카라 게임 웹사이트™S A SHORT TERM. SO GAS COMPANIES USE WINTER BLENDS, WHICH ARE CHEAPER TO PRODUCE. SO GAS PRICES SHOULD REMAIN STEADY IN THE SHORT TERM. BUT AGAIN, BECAUSE THERE바카라 게임 웹사이트™S JUST SO MUCH UNCERTAINTY AND NO TELLING HOW LONG THIS WAR COULD LAST, THERE바카라 게임 웹사이트™S ALSO NO TELLING ABOUT THE TRUE ECONOMIC IMPACTS WE COULD FEEL HERE IN THE UNITED
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Oil prices could reach 'uncharted waters' if the Israel-Hamas war escalates, the World Bank says
The World Bank reported on Monday that oil prices could be pushed into "uncharted waters" if the violence between Israel and Hamas widens, which could result in increased food prices worldwide.The World Bank's Commodity Markets Outlook found that while the effects on oil prices should be limited if the conflict doesn바카라 게임 웹사이트™t expand, the outlook "would darken quickly if the conflict were to escalate."The attack on Israel by the militant organization Hamas and the ensuing Israel military operation against Hamas have raised fears of a wider Mideast conflict.And the threat of escalation looms. Israeli tanks and infantry pushed into Gaza over the weekend as Israeli Prime Minister Benjamin Netanyahu announced a "second stage" in the war. Hamas officials have called for more regional assistance from allies, including Iran-backed Hezbollah in Lebanon.The World Bank report simulates three scenarios for the global oil supply in the event of a small, medium or large disruption.Effects should be limited if the conflict doesn바카라 게임 웹사이트™t widen in a "small disruption" scenario 바카라 게임 웹사이트“ as oil prices are expected to decline from current levels of roughly $90 a barrel to an average of $81 a barrel next year, the World Bank estimates.But during a "medium disruption" 바카라 게임 웹사이트“ equivalent to the disruptions experienced during the Iraq war 바카라 게임 웹사이트“ the global oil supply of about 100 million barrels a day would decline by 3 million to 5 million barrels per day, driving oil prices up possibly by 35%.Video below: Economists say oil prices, stock market could be affected by long-term war in IsraelIn a "large disruption" scenario 바카라 게임 웹사이트“ comparable to the Arab oil embargo of 1973 바카라 게임 웹사이트“ the global oil supply would shrink by 6 million to 8 million barrels per day and prices could go up by 56% to 75%, or to $140 to $157 a barrel, according to the report.Indermit Gill, the World Bank바카라 게임 웹사이트™s chief economist, said Russia's invasion of Ukraine has already had disruptive effects on the global economy "that persist to this day.""If the conflict were to escalate, the global economy would face a dual energy shock for the first time in decades 바카라 게임 웹사이트“ not just from the war in Ukraine but also from the Middle East," Gill said.Ayhan Kose, the World Bank's deputy chief economist, said higher oil prices will inevitably result in higher food prices."If a severe oil price shock materializes, it would push up food price inflation that has already been elevated in many developing countries" as a result of Russia's Ukraine invasion, Kose said. "An escalation of the latest conflict would intensify food insecurity, not only within the region but also across the world."Overall, oil prices have risen about 6% since the start of the conflict. And gold 바카라 게임 웹사이트“ a commodity that tends to rise in periods of conflict 바카라 게임 웹사이트“ has increased by roughly 8%, according to the World Bank.Some analysts are skeptical that the U.S. would experience massive oil shortages, since U.S. oil production is at an all-time high.At a Bloomberg event on Thursday, Treasury Secretary Janet Yellen said the Biden administration was monitoring the economic consequences of Israel's war against Hamas carefully."So far, we have not yet seen much that has global consequences," she said, but if the war spreads "of course there could be more meaningful consequences."International Energy Agency Executive Director Fatih Birol said between Russia's invasion and the latest violence between Israel and Hamas in Gaza, "no one can convince me that oil and gas are safe and secure energy choices for countries or consumers."

The World Bank reported on Monday that oil prices could be pushed into "uncharted waters" if the violence between Israel and Hamas widens, which could result in increased food prices worldwide.

The World Bank's Commodity Markets Outlook found that while the effects on oil prices should be limited if the conflict doesn바카라 게임 웹사이트™t expand, the outlook "would darken quickly if the conflict were to escalate."

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The attack on Israel by the militant organization Hamas and the ensuing Israel military operation against Hamas have raised fears of a wider Mideast conflict.

And the threat of escalation looms. Israeli tanks and infantry pushed into Gaza over the weekend as Israeli Prime Minister Benjamin Netanyahu announced a "second stage" in the war. Hamas officials have called for more regional assistance from allies, including Iran-backed Hezbollah in Lebanon.

The World Bank report simulates three scenarios for the global oil supply in the event of a small, medium or large disruption.

Effects should be limited if the conflict doesn바카라 게임 웹사이트™t widen in a "small disruption" scenario 바카라 게임 웹사이트“ as oil prices are expected to decline from current levels of roughly $90 a barrel to an average of $81 a barrel next year, the World Bank estimates.

But during a "medium disruption" 바카라 게임 웹사이트“ equivalent to the disruptions experienced during the Iraq war 바카라 게임 웹사이트“ the global oil supply of about 100 million barrels a day would decline by 3 million to 5 million barrels per day, driving oil prices up possibly by 35%.

Video below: Economists say oil prices, stock market could be affected by long-term war in Israel

In a "large disruption" scenario 바카라 게임 웹사이트“ comparable to the Arab oil embargo of 1973 바카라 게임 웹사이트“ the global oil supply would shrink by 6 million to 8 million barrels per day and prices could go up by 56% to 75%, or to $140 to $157 a barrel, according to the report.

Indermit Gill, the World Bank바카라 게임 웹사이트™s chief economist, said Russia's invasion of Ukraine has already had disruptive effects on the global economy "that persist to this day."

"If the conflict were to escalate, the global economy would face a dual energy shock for the first time in decades 바카라 게임 웹사이트“ not just from the war in Ukraine but also from the Middle East," Gill said.

Ayhan Kose, the World Bank's deputy chief economist, said higher oil prices will inevitably result in higher food prices.

"If a severe oil price shock materializes, it would push up food price inflation that has already been elevated in many developing countries" as a result of Russia's Ukraine invasion, Kose said. "An escalation of the latest conflict would intensify food insecurity, not only within the region but also across the world."

Overall, oil prices have risen about 6% since the start of the conflict. And gold 바카라 게임 웹사이트“ a commodity that tends to rise in periods of conflict 바카라 게임 웹사이트“ has increased by roughly 8%, according to the World Bank.

Some analysts are skeptical that the U.S. would experience massive oil shortages, since U.S. oil production is at an all-time high.

At a Bloomberg event on Thursday, Treasury Secretary Janet Yellen said the Biden administration was monitoring the economic consequences of Israel's war against Hamas carefully.

"So far, we have not yet seen much that has global consequences," she said, but if the war spreads "of course there could be more meaningful consequences."

International Energy Agency Executive Director Fatih Birol said between Russia's invasion and the latest violence between Israel and Hamas in Gaza, "no one can convince me that oil and gas are safe and secure energy choices for countries or consumers."