Oil prices plunged by 3% on Monday as market sentiment hedged its bets that Israel’s ground invasion of Gaza would not have global repercussions impacting oil and gas supplies. On Monday at 145 p.m. Brent crude was trading down 3.09% at $87.68 per barrel for a loss of $2.80 on the day. West Texas Intermediate WTI was trading down 3.66% at $82.41 per barrel, for a loss of $3.13 on the day.
The World Bank on Monday forecast oil prices to average $81 per barrel in 2024, assuming the Israel-Hamas conflict remained contained. Alternatively, the bank wanted that an expansion of this conflict to multiple fronts could lead to major supply disruption, sending prices as high as $157 per barrel. Global oil markets are now latching on to a scenario in which the conflict will have a limited impact on commodities markets.