Crude Prices Jump on Geopolitical Risks as Israel Strikes Hamas Leaders in Qatar

Group 1 - Crude oil and gasoline prices have increased significantly due to concerns over the escalation of conflict in the Middle East following Israel's strike in Qatar targeting Hamas leaders [1][2] - The conflict in the Middle East is critical as it accounts for about one-third of global oil supplies, raising fears of supply disruptions [2] - OPEC+ has agreed to raise crude production by 137,000 barrels per day (bpd) starting in October, which is a decrease from the previous increase of 547,000 bpd in the prior months [3] Group 2 - Reduced Russian crude output is tightening global oil supplies, with Ukrainian attacks on Russian refineries leading to a significant drop in Russia's crude-processing runs to 5.09 million bpd, the lowest in over 3.25 years [3] - Ongoing tensions from the war in Ukraine may lead to additional sanctions on Russian energy exports, further constraining global oil supplies [4] - US Treasury Secretary indicated that the US will closely examine sanctions on Russia, while European leaders are advocating for secondary sanctions targeting companies supporting Russia's war efforts [4]