PT Solid Gold Berjangka | Oil Heads for Weekly Gain on Heightened Middle East Tensions

02:47 09 February in Commodity, PT SGB, SOLID GOLD BERJANGKA | SOLID GROUP

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Solid Gold Berjangka | Oil was poised for a weekly advance after Prime Minister Benjamin Netanyahu’s dismissal of a potential cease-fire in the Israel-Hamas war heightened risks in the Middle East.

West Texas Intermediate rose above $76 a barrel, after climbing more than 3% on Thursday as the Israeli leader’s comments triggered a surge in algorithmic buying. Brent crude closed near $82. The move of almost 6% this week has undone most of last week’s slump, which was partially driven by optimism the two sides were moving closer to a pause in hostilities.

Netanyahu said he sees “no other solution than total victory,” and while US officials struck a more optimistic tone, threats by Iraq to pull support for the American-led coalition added to tensions in the region, which produces around a third of the world’s oil. Major shipping companies also warned that the security situation in the Red Sea continues to deteriorate.

That nervousness over the Middle East has been partially offset by ample global supply and shaky outlooks in the world’s two biggest consumers. There are expectations that the US Federal Reserve will leave interest rates elevated for longer, and China is still struggling to revive domestic demand and consumer confidence. That’s seen the US crude benchmark rise about 7% this year.

WTI for March delivery rose 0.3% to $76.44 a barrel at 8:02 a.m. in Singapore. Brent for April settlement closed 3.1% higher at $81.63 a barrel on Thursday.

Source : Bloomberg