Oil heads for weekly gain as Middle East keeps market on edge
CHIGOZIE AMADI
Oil prices were heading for a weekly gain of about 2%, with Friday’s prices were little changed on the day as traders were kept on edge by simmering tensions in the Middle East ahead of a planned resumption in Gaza ceasefire talks in the coming days.
According to Reuters, Brent crude futures rose 33 cents, or 0.44%, to $74.71 a barrel by 1003 GMT while U.S. West Texas Intermediate crude was up 31 cents, or 0.44%, at $70.50.
Both benchmarks have fluctuated this week, rising on Monday and Tuesday before falling on Wednesday and Thursday, largely on expectations of heightened or reduced Middle East risk.
“Uncertainty makes investors understandably and justifiably pragmatic,” said PVM analyst John Evans.
Investors continue to await Israel’s response to a missile attack by Iran on Oct. 1, which could involve strikes on Tehran’s oil infrastructure.
Investors are also seeking more clarity on China’s stimulus policies, though analysts do not expect such measures to provide a major boost to oil demand.
Goldman Sachs on Thursday left its oil price forecasts unchanged at between $70 and $85 a barrel for Brent in 2025, expecting the impact from any Chinese stimulus to be modest relative to bigger drivers such as oil supply from the Middle East.
“Market participants remain fundamentally torn between supply risks due to the tense situation in the Middle East and demand concerns,” Commerzbank analysts said.
