Oil prices rose on Friday. Oil is on track for a weekly gain of more than 1% as tensions in the key Middle East region continue and ceasefire talks resume in Gaza in the coming days.
Brent crude futures rose 31 cents, or 0.4%, to $74.69 a barrel by 0642 GMT, while WTI crude was up 29 cents, or 0.4%, to $70.48 a barrel.
The right price for WTI is now thought to be around $70, where it is. New price drivers are awaited, including the outcome of China’s NPC Standing Committee meeting and Israel’s response to Iran’s October 1 missile strike.
Both indices fell 58 cents a barrel after prices surged in the previous session on expectations of rising or falling tensions in the Middle East.
Oil traders are awaiting Israel’s response to the Oct. 1 Iranian strike, which could have hit Tehran’s oil infrastructure and disrupted supplies. But Israel is expected to hit Iranian military targets, not nuclear or oil targets.
U.S. and Israeli officials are set to resume talks in the coming days to reach a ceasefire and release hostages in Gaza. Previous attempts have failed.
Blinken said on Thursday that the U.S. did not want a prolonged Israeli offensive in Lebanon, while France called for a ceasefire and focused on diplomacy.
The ceasefire talks are seen as having little net negative impact on oil prices, with the focus more on the conflict in Lebanon and Israel’s potential response to Iran.
Investors are also looking for more clarity on Beijing’s stimulus policies. Still, analysts do not expect such measures to provide a major boost to oil demand from China, the world’s No. 2 consumer.
Analysts say oil, natural gas, and coal price forecasts are unchanged. China’s stimulus is expected to provide a modest boost to energy prices compared to larger factors such as oil supplies from the Middle East and winter weather for natural gas.
Brent is forecast to be in the $70 to $85 range for 2025.