International oil prices rose more than four percent early Monday as the Palestine-Israel conflict sparked concerns about disrupted crude supplies. Chinese experts said that it will lift domestic oil prices momentarily as oil supplies remain relatively sufficient.
The global benchmark Brent crude oil futures price rose 4.07 percent to $88.02 a barrel, while US WTI crude oil futures rose 4.25 percent to $86.31 a barrel.
Oil prices have soared as the sudden flare-up of Palestine-Israel conflict threatens to heighten tensions in the Middle East. The Middle East is home to nearly one-third of the world's oil supply.
Despite the spike in crude oil prices, some analysts believe it will be a "knee-jerk reaction" and may be temporary.
"Oil and other affected commodity prices in China and the world may rise but it may be temporary," Wu Chenhui, an independent industry analyst who closely follows the rare-earth sector, told the Global Times on Monday.
Neither side of the conflict is a major source of oil. Israel has two oil refineries with a combined production of nearly 300,000 barrels per day. According to the US Energy Information Administration (EIA), the country has "virtually no crude oil or condensate production." Similarly, the Palestinian territories do not produce oil.
However, if the conflict involves oil-producing countries and important crude oil transportation routes, the rise in oil prices could be long-term, Wu noted. "For example, amid the Russia-Ukraine crisis, as Russia is a major oil and gas producing country and the crisis affected important transportation routes, prices of oil has been oscillating at a higher position in the past two years," he said.
Eurasia Group director of energy, climate and resources, Henning Gloystein, in a comment on CNBC noted the risk of the conflict expanding. As he said, "there is also a risk of escalation of the conflict at the regional level. If Iran and others get involved in this, there could also be supply problems, although we are not at that stage yet."
（Picture: Veer）
