Islamabad, Oct 4: Oil edges up on Middle East conflict but supply outlook limits gains
Oil prices edged higher during early Asian trading on Friday, maintaining their strong weekly gains as investors balanced the risk of Middle East tensions disrupting crude supplies with the currently well-supplied global market.
Brent crude futures rose by 9 cents, or 0.12%, reaching $77.71 per barrel as of 0010 GMT, while U.S. West Texas Intermediate crude futures climbed 8 cents, or 0.11%, to $73.79 per barrel. Both benchmarks were set for weekly gains of around 8%.
President Joe Biden’s Thursday remarks about possible U.S. strikes on Iran’s oil facilities, in response to Tehran’s missile attack on Israel, fueled a 5% spike in oil prices.
According to ANZ analyst Daniel Hynes, the market is now factoring in potential supply disruptions in the Middle East, a region that contributes roughly one-third of global oil supply. He added that bearish investors unwinding their positions could further drive prices upward if bullish bets increase.
