In an aerial view, the Valero Houston refinery seen on August 28, 2023 in Houston, Texas.
Oil prices dipped even after Israel sent ground forces into the Gaza Strip, raising tensions in the Middle East, as investors closely monitor the U.S. Federal Reserve's monetary policy meeting later this week.
He said the ground operations were "limited so far" and noted other macroeconomic concerns.
Oil prices surged late Friday, with Brent jumping above $90 per barrel as Israel said its troops were ‘increasing the ground operation’ in Gaza as it seeks to eradicate the militant group Hamas.
"While a major oil supply disruption is not our base case, the oil market last week became a little too complacent about the likelihood of a major Israeli ground incursion in Gaza, and the risk of a wider regional war," McNally continued.
Persons:
Israel, Brent, Bob McNally, Benjamin Netanyahu, McNally
Organizations:
. Federal, U.S . West Texas, Rapidan Energy Group, CNBC, Hamas
Locations:
Valero Houston, Houston , Texas, Gaza, ., U.S, Israel