Oil prices headed for weekly gains after Prime Minister Benjamin Netanyahu dismissed the possibility of a ceasefire in the Israel-Hamas war, adding bullish momentum to the market.
Brent crude oil traded near $82 a barrel after rising more than 3% on Thursday, its biggest single-day gain in a month. This week's nearly 6% move, also accompanied by an increase in refining margins, points to tighter fuel markets, while gains in nearby indicators in the crude oil market point to broad-based strength.
advertisement
Continue reading below
Prime Minister Benjamin Netanyahu believes there is “no solution other than complete victory” and said Iraq's threat to withdraw support for the U.S.-led coalition has heightened tensions in the main oil-producing region. Shipping companies also warned that the security situation in the Red Sea continues to deteriorate.
“This has been a strong week for oil prices as hopes for de-escalation in the Middle East failed to receive much-needed validation,” said Yep Jun Long, market strategist at IG Asia. “Market participants are pricing in geopolitical risks to persist.”
A series of more positive market indicators this week support a solid outlook for oil prices. In the United States, the premium for gasoline over crude oil has risen to its highest level since September as inventories decline across the country. In the diesel market, traders continue to monitor Ukrainian drone attacks on Russian refineries, and a fire broke out at another Russian facility on Friday.
Meanwhile, buying in Europe came at a critical time for North Sea prices, indicating a strong oil market in the region. This caused Brent's prompt spread, a measure of the health of neighboring markets, to post its biggest single-day rise since October.
price: |
---|
|
© 2024 Bloomberg