Oil heads for weekly gain as Middle East tensions keep market on edge
Shafaq News/ Oil prices nudged higher on Fridayand are on track for a weekly gain of more than 1%, as tensions in the world'stop oil-producing region, the Middle East, and a restart in Gaza ceasefiretalks in the coming days kept traders on edge.
Brent crude futures climbed 18 cents, or 0.2%,to $74.56 a barrel by 0342 GMT while U.S. West Texas Intermediate crude was at$70.34 a barrel, up 15 cents, or 0.2%.
Both benchmarks settled down 58 cents a barrelin the previous session after prices fluctuated against expectations ofheightened or reduced tensions in the Middle East.
Oil traders are waiting for Israel's response toa missile attack by Iran on Oct. 1 that may involve hitting Tehran's oilinfrastructure and disrupt supplies, although reports said Israel would strikeIranian military, not nuclear or oil, targets.
U.S. and Israeli officials are set to restarttalks for a ceasefire and the release of hostages in Gaza in the coming days.Previous attempts to reach a deal have failed.
U.S. Secretary of State Antony Blinken said onThursday that the United States does not want a protracted Israeli campaign inLebanon, while France has called for a ceasefire and focus on diplomacy.
Ceasefire talks have a small net negative impacton oil prices, Sycamore said, adding the focus is more on the conflict inLebanon and Israel's potential response to Iran.
Investors are also eyeing more clarity on Beijing'sstimulus policies, although analysts do not expect such measures to provide amajor boost to oil demand from China, the world's No. 2 consumer.
It forecasts Brent in the $70 to $85 range.
(Reuters)
