Oil Steadies After Surge as Traders Keep Focus on Middle East
Oil steadied after surging almost 2% on Monday as traders tracked tensions in the Middle East, and broader markets carried a risk-off tone.
US benchmark West Texas Intermediate was little changed just above $70 a barrel, while Brent closed near $74 in the week’s opening session. Traders are waiting to see how and when Israel will retaliate against Iran for a recent missile strike, as well as subsequent attacks by Tehran-backed proxies. In wider markets, Asian stocks were set to decline following US losses.
Crude has been buffeted this month — with US benchmark WTI swinging in a more-than-$12 range — as conflict in the Middle East has raised the potential for disruptions to supplies. At the same time, China has moved to support growth with stimulus, supporting prices, but investors remain wary that the global oil market may swing to a surplus in the coming quarters.
WTI for November delivery which is due for expiry was 0.1% lower at $70.46 a barrel at 7:17 a.m. in Singapore.
The more-active December contract also fell 0.1% to $69.98.
Brent for December settlement closed 1.7% higher at $74.29 a barrel on Monday.
Source : Bloomberg
