Oil heads for weekly gain as Middle East tensions keep traders nervous

Oil prices rose on Friday and are on track for a weekly gain of more than 1 percent, as tensions in the world’s top oil-producing region, the Middle East, and the resumption of ceasefire talks in Gaza In the coming days they kept merchants nervous. .

Brent crude futures rose 45 cents, or 0.6 percent, to $74.83 a barrel by 0036 GMT, while U.S. West Texas Intermediate crude was at $70.62 a barrel, up $43. cents, or 0.6 percent.

“We remain of the view that the correct price of crude oil currently is around $70, while we await new price drivers, including the outcome of China’s NPC Standing Committee meeting, as well as Israel’s response to the missile attack. from Iran on October 1,” IG market analyst Tony Sycamore said in a note, referring to WTI prices.

Both benchmarks fell 58 cents a barrel in the previous session after prices fluctuated against expectations of higher or lower tensions in the Middle East.

Oil traders are awaiting Israel’s response to a missile attack by Iran on October 1 that may involve attacking Tehran’s oil infrastructure and disrupting supplies, although reports say Israel would strike Iranian military targets, not nuclear ones. or oil tankers.

US and Israeli officials are set to restart talks for a ceasefire and the release of hostages in Gaza in the coming days. Previous attempts to reach an agreement have failed.

US Secretary of State Antony Blinken said on Thursday that the United States does not want a prolonged Israeli campaign in Lebanon, while France has called for a ceasefire and a focus on diplomacy.

The ceasefire talks have a small net negative impact on oil prices, Sycamore said, adding that the focus is more on the conflict in Lebanon and Israel’s possible response to Iran.

Investors are also eyeing greater clarity on Beijing’s stimulus policies, although analysts do not expect such measures to provide a big boost to oil demand from China, the world’s second-largest consumer.

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