Oil prices on track for a weekly gain

August 09, 2024 (MLN): Oil steadied on Friday but remained on track for a weekly gain of over 2%, with traders monitoring developments in the Middle East and a rally in wider markets.

Brent crude traded near $79 per barrel. It is on track to record a weekly gain of around 2.3%.

While West Texas Intermediate crude (WTI) was at $76.29 per barrel.

The US, Qatar, and Egypt are calling for a new round of ceasefire talks to end the war in Gaza, while the region braces for an expected Iranian attack on Israel, as reported by Bloomberg.

Oil has rallied after Brent tumbled on Monday to a seven-month low, tracking a rout in global equity markets.

Futures are set to end a four-week run of losses, with the halting of Libya’s biggest field, a sixth week of US stockpile draws and Ukraine’s incursions into Russia compounding the bullishness.

“Brent reached the bottom of a long-held range between $75 and $90 per barrel this week before stabilising markets, geopolitical tensions, a continued drop in US crude stocks, and a technically oversold market condition all helped support a small and ongoing recovery,” said Ole Hansen, head of commodities strategy at Saxo Bank.

Meanwhile, jet fuel demand is on the mend in China.

The rare bright spot comes after months of bearish signals, including data this week that showed that the world’s biggest crude importer shipped in the fewest barrels in almost two years in July.

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