Oil Steadies After Two-Day Drop as Traders Track Mideast Tension
Oil steadied after a two-day fall, with traders keeping their focus on geopolitical developments in the Middle East and the outlook for supply.
West Texas Intermediate held above $70 a barrel after declining by more than 2% over the prior two sessions, while Brent settled near $74 on Thursday. Negotiators between Israel and Hamas will meet in coming days, as they make a renewed effort to end the conflict in Gaza. At the same time, traders are on alert for Israel’s potential retaliatory strike on Iran.
Oil has been whipsawed this month by the sustained tensions in the Middle East, as well as concerns that the market may face a glut next year, with output growth from non-OPEC+ producers and plans by the cartel to ease curbs. The International Energy Agency warned this week that global demand growth would continue to weaken due to China’s slowdown and uptake of electric vehicles.
WTI for December delivery rose 0.4% to $70.44 a barrel at 7:27 a.m. in Singapore.
Brent for December delivery settled 0.8% lower at $74.38 a barrel on Thursday.
Source : Bloomberg