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Rabin, Yitzhak

Crude Oil Prices React to Israeli Prime Minister Yitzhak Rabin's Assassination

Strategic Insights

— 1 min read

The assassination of Israeli Prime Minister Yitzhak Rabin sent shockwaves through the global energy market, causing crude oil prices to spike on the New York Mercantile Exchange (Nymex) before dropping due to technical resistance and profit-taking. The price of the crude oil contract for December 1995 deliveries surged to $18.05/bbl on November 6, 1995, before easing to close at $17.71/bbl. Analysts attribute the price movement to a knee-jerk reaction to the news, which created an opportunity for traders to sell. The market's reaction was tempered by the fact that the assassin was a Jewish law student, which reduced the perceived impact of Middle East tensions on oil prices.

Key Takeaways:

  • Crude oil prices on Nymex surged to $18.05/bbl on November 6, 1995, before dropping to $17.71/bbl due to technical resistance and profit-taking.
  • Analysts claim that the market's reaction was a knee-jerk response to the news, which created an opportunity for traders to sell.
  • The price of the crude oil contract for December 1995 deliveries is expected to remain range-bound between $17.70/bbl and $18/bbl until inventory statistics are released.
  • West Texas Intermediate (WTI) at Cushing, Okla., dropped about 20 cents/bbl in afternoon trading on profit-taking.
  • Cash prices for domestic sour crudes eased on mounting pressure from Middle East and Latin American supplies.
  • Heating oil prices on Nymex settled down 0.57 cents at 51.15 cents/gallon, but held on to $3.70-$3.80/bbl crack spreads due to colder weather and inventory levels.

Statistics:

  • Crude oil prices on Nymex increased to $18.05/bbl on November 6, 1995, before dropping to $17.71/bbl.
  • The price of the crude oil contract for December 1995 deliveries is expected to remain range-bound between $17.70/bbl and $18/bbl.
  • WTI at Cushing, Okla., dropped about 20 cents/bbl in afternoon trading on profit-taking.
  • Cash prices for domestic sour crudes eased by about 50 cents/gallon in the wake of Middle East and Latin American supply pressures.
  • Heating oil prices on Nymex settled down 0.57 cents at 51.15 cents/gallon.

Sources:

  • W.H. Brown & Co.
  • New York Mercantile Exchange (Nymex)
  • Mobil Oil Co.
  • Oil Market News

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