Oil is preparing to end the week with a rise
Oil continued its rise for the third day and entered a weekly gain route as US employment data supported the Fed‘s interest rate cut this year, supporting risky assets.
Brent climbed above $84 per barrel, holding above the 100-day moving average, up nearly 1 percent after a two-day rise. US crude oil approached $80. Initial claims for unemployment benefits in the US rose to their highest level since August, supporting claims that monetary policy is easing. The dollar weakened on Thursday, making commodities more attractive to most buyers.
Crude oil’s recent gains reflect relatively muted price action, with futures recording the lowest weekly trading range since March. Prices remain high this year, helped by OPEC+ supply cuts, strong global demand and recurring tensions in the Middle East. The Organization of Petroleum Exporting Countries and its allies will meet next month to decide on production in the second half.
“The crude oil market will remain committed to OPEC’s supply policies. Ongoing disruptions should support prices but the market is sensitive to geopolitical issues,” ANZ Banking Group analysts Daniel Hynes and Soni Kumari said in a note.
In the Middle East, Israel said it would continue its fight against Hamas in the Gaza Strip even without US help. President Joe Biden had said that he would stop the shipment of additional offensive weapons to Israel if Israel launched a land operation against Rafah.