{"id":9370,"date":"2024-01-05T11:19:48","date_gmt":"2024-01-05T11:19:48","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=9370"},"modified":"2024-01-05T11:19:48","modified_gmt":"2024-01-05T11:19:48","slug":"oil-prices-rise-on-middle-east-tensions","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/9370\/","title":{"rendered":"Oil prices rise on Middle East tensions"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0Oil prices gained on Friday, as U.S. Secretary of State Antony Blinken prepared to visit the Middle East to try and prevent the Israel-Gaza conflict from widening.<\/p>\n

Brent crude futures were up 44 cents, or 0.57%, to $78.03 a barrel, while U.S. West Texas Intermediate crude futures rose 57 cents, or 0.79%, to $72.76 at 1032 GMT.<\/p>\n

At its intra-day peak, the WTI futures contract traded more than $1 above previous close.<\/p>\n

Both benchmarks are on track to end the first week of the year higher, having almost recouped their losses from Thursday after hefty U.S. gasoline and distillate stock builds.<\/p>\n

The price rebound serves as “a reminder of the risk that is rooted in ever-growing tension in the Middle East,” PVM analyst Tamas Varga said in a note.<\/p>\n

Israeli forces plan a more targeted approach in the north and further pursuit of Hamas leaders in the south, its defence minister said on Thursday.<\/p>\n

As the threat of the conflict expanding persists, Blinken was set to travel to the Middle East for a week of diplomacy, the State Department said.<\/p>\n

“There is still plenty of tension in the Middle East with Houthi rebels launching a sea drone in the Red Sea, a U.S. airstrike in Baghdad,” ING analysts said in a report on Friday.<\/p>\n

Investors also watched macroeconomic data for indications of when interest rate cuts might commence, as lower borrowing cuts can spur economic growth and translate to higher oil demand.<\/p>\n

Euro zone inflation rose in December and could continue rising in early 2024, which would ease pressure on the European Central Bank to start cutting rates.<\/p>\n

The latest U.S. Federal Reserve meeting on Thursday gave a growing sense that inflation is under control and rising concern about the risks that an “overly restrictive” monetary policy may hold for the economy.<\/p>\n

Investors will also be looking ahead to U.S. payroll and unemployment data at 1330 GMT.<\/p>\n

Updated on