Oil prices rise, M.East tensions lead weekly gains

crude

Oil prices edged higher in Asian trade on Friday and headed for a positive week as lingering concerns over worsening Middle East conflicts largely kept the risk premium in play. Brent oil futures for December delivery rose 0.4% to $74.70 a barrel, while West Texas Intermediate crude futures rose 0.5% to $70.55 a barrel.

Brent and WTI futures traded between 1% and 2% higher this week, recovering some of the steep losses recorded in October. A major recovery in crude oil was capped by data showing a larger-than-expected build in U.S. inventories, signaling less tight supplies in the world’s biggest fuel consumer.

Oil prices traded at weekly highs as speculation over Middle East conflicts caused some volatility in markets. Even as Israel stepped up its rhetoric against Iran this week, U.S. officials continued their efforts to broker a ceasefire, especially ahead of the 2024 presidential election, which could change future U.S. policy in the Middle East.

Recent weakness in oil markets has been driven by concerns over slowing demand from major importer China as stimulus measures from the country fueled limited confidence.

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