Video|29 August 2024

MENA – Oil Prices Spike Amid Libya Tensions & Bahrain’s Inflation Eases

Crude oil prices surged by around $2 on Monday, with Brent crude and WTI rising to $80.1 and $77.4 per barrel, respectively. This was mainly due to supply concerns prompted by production cuts in Libya and concerns of a wider Middle East conflict. Heightened political tensions in Libya over its central bank’s leadership has led the Libyan authorities to announce the closure of oilfields in eastern Libya. We expect oil prices to average $83 per barrel this year.

Annual inflation in Bahrain slowed for the second consecutive month to record 1.1% in July. The slowdown in inflation was driven by the ease in food and non-alcoholic beverages and the drop in prices in recreation and culture. These were more than enough to offset the increase in prices for housing and utilities. We expect inflation to remain relatively low this year to average 1.8%, supported by a tight monetary policy stance.

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