{"id":8505,"date":"2023-11-03T12:32:14","date_gmt":"2023-11-03T12:32:14","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=8505"},"modified":"2023-11-03T12:32:14","modified_gmt":"2023-11-03T12:32:14","slug":"oil-heads-for-weekly-loss-as-geopolitical-risk-premium-wanes","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/8505\/","title":{"rendered":"Oil heads for weekly loss as geopolitical risk premium wanes"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices were little changed on Friday, but headed for a second week of losses as supply concerns driven by conflict in the Middle East eased, while the demand outlook from the world’s top crude importer China remained uncertain.<\/p>\n

Brent crude futures were down 13 cents, or 0.1%, to $86.72 a barrel at 0955 GMT, while U.S. West Texas Intermediate crude futures slipped 10 cents, or 0.1%, to $82.36 a barrel.<\/p>\n

Both benchmarks gained more than $2 a barrel on Thursday, but were on track to lose about 4% on the week.<\/p>\n

China’s manufacturing activity unexpectedly contracted in October. The official purchasing managers’ index (PMI) fell to 49.5 in October from 50.2, dipping back below the 50-point level demarcating contraction from expansion, data from the National Bureau of Statistics showed on Wednesday.<\/p>\n

On Friday, a private sector survey showed China’s services activity expanded at a slightly faster pace in October, but sales grew at the softest rate in 10 months and employment stagnated as business confidence waned.<\/p>\n

Meanwhile, a U.S. Labor Department employment report later on Friday is expected to show labour market conditions steadily easing, with annual wage growth the smallest in nearly 2-1\/2 years and significant growth in the supply of workers.<\/p>\n

The report could bolster the view that the U.S. Federal Reserve need not raise interest rates further.<\/p>\n

The Fed held interest rates steady on Wednesday, while the Bank of England held rates at a 15-year peak. The stable policies kept oil prices supported as some risk appetite returned to markets.<\/p>\n

Meanwhile, geopolitical concerns remained in focus, as Israeli forces on Thursday encircled Gaza City – the Gaza Strip’s main city – in their assault on Hamas, its military said, but the Palestinian militant group resisted their drive with hit-and-run attacks from underground tunnels.<\/p>\n

“The oil market will be watching for an escalation of tensions, particularly on the Lebanese border, as Hezbollah attacks increase,” City Index Fiona Cincotta said.<\/p>\n

Hezbollah leader Sayyed Hassan Nasrallah will on Friday make his first public comments since Hamas and Israel went to war, a speech that will be scrutinised for clues on how the group’s role in the conflict might evolve.<\/p>\n

On the supply side, top oil exporter Saudi Arabia is expected to reconfirm an extension of its voluntary oil-output cut of 1 million barrels per day through December, based on analyst expectations.<\/p>\n

Updated on