Oil prices rose sharply in Asian trade on Thursday, after Israel toughened its rhetoric against Iran, with attention focused on business activity data from several major economies in the coming days. Crude suffered two weeks of heavy losses amid concerns over falling demand. Prices also fell on Wednesday after US inventory data showed a larger-than-expected build in crude stockpiles.
Brent oil futures for December delivery rose 1% to $75.72 a barrel, while West Texas Intermediate crude futures rose 1.1% to $71.57. Israel intensified its offensive against Hamas and Hezbollah this week, prompting retaliation from both military groups.
Signs of a US economy slowdown could further bet the Federal Reserve’s low interest rate cuts – which have weighed on oil markets in recent weeks. Strength in major global economies also provides a bright outlook for crude demand, although sluggish growth in top oil importer China will offset this trend.
