Oil Rises For Third Day As Israeli Strikes Fuel Mideast Tensions
Oil rose for a third day as rising tensions in the Middle East overshadowed concerns about a potential global oversupply.
Global benchmark Brent crude traded above $71 a barrel, having risen 1.7% over the past two sessions, while West Texas Intermediate neared $68. Israel has launched a series of military attacks on Gaza, with a nearly two-month ceasefire with Hamas appearing to be rapidly unraveling.
Meanwhile, U.S. President Donald Trump said he would view attacks by Yemen’s Houthis on shipping as a direct insult by Iran. Ahead of the latest spike in tensions, which has seen U.S. forces target the rebels, his administration has tightened sanctions on Tehran.
Crude remained on track for a quarterly loss on a confluence of bearish factors. An escalating global trade war is threatening demand, while OPEC and its allies are set to increase output from April. That’s because the global market is already set for a glut, according to the International Energy Agency.
The potential hit to global crude supplies as the U.S. pressures Iran “could be around 1 million barrels a day, offsetting any gains from OPEC ending voluntary production cuts,” ANZ Group Holdings Ltd. analysts Brian Martin and Daniel Hynes said in a note.
Source: Bloomberg
