Oil prices rose on Friday, poised for a weekly gain of over 3%, as conflicting factors influenced the market.
On one hand, escalating tensions in the Middle East, particularly the ongoing conflict between Israel and Hamas, raised concerns about potential disruptions to oil supplies from the region.
Increased Israeli airstrikes on Gaza and the threat of Iranian retaliation contributed to the upward pressure on prices.
Additionally, a force majeure declaration at Libya’s Sharara oilfield due to protests further tightened global oil supplies.
On the other hand, positive economic indicators, such as lower-than-expected US unemployment claims, boosted optimism about global oil demand.
Furthermore, China’s consumer price index (CPI) rose slightly faster than anticipated, suggesting a potential uptick in oil consumption in the world’s largest importer.
These factors combined to support oil prices, with Brent crude and West Texas Intermediate (WTI) both trading higher for the week.
Brent crude was up by 0.4% to $79.48 a barrel, while WTI increased by 0.5% to $76.57 a barrel.
