Israel-Palestine Conflict Poses Limited Oil Supply Risk Unless Tensions Spread Regionally

Oil prices may spike on Monday but overall impact expected to be limited unless conflict escalates further.

Israel and Palestine not major oil producers, but conflict is near key oil-producing region.

Israel has 2 refineries with 300k bpd capacity but little oil production. Palestine has no oil production.

If conflict spreads regionally, involving US, Iran, etc. impact could be greater.

Global inventories are low, so conflict has potential to impact supply and prices over time.