Oct 25 2024: Oil prices edged up on Friday, poised to close the week with a gain exceeding 1% amid escalating tensions in the Middle East and an upcoming resumption of Gaza ceasefire talks, adding uncertainty for traders.
As of 06:42 GMT, Brent crude futures rose by 0.4% to $74.69 per barrel, while U.S. West Texas Intermediate (WTI) crude was up 0.4% at $70.48 per barrel.
Market analyst Tony Sycamore of IG noted that oil prices, particularly WTI, seem balanced around the $70 mark while awaiting further market drivers, including the outcome of China’s National People’s Congress Standing Committee meeting and Israel’s response to Iran’s October 1 missile attack.
Earlier, both benchmarks settled down by 58 cents per barrel as prices fluctuated, reflecting market uncertainty over escalating or calming tensions in the Middle East.
Traders are watching for Israel’s potential response to the recent missile strike, which could target Iranian military assets rather than critical oil infrastructure, aiming to avoid severe supply disruptions.
Negotiations between U.S. and Israeli officials are expected to resume soon in an attempt to secure a ceasefire and hostages’ release in Gaza, though previous efforts have been unsuccessful. U.S. Secretary of State Antony Blinken emphasized on Thursday that the U.S. does not support an extended Israeli campaign in Lebanon, while France has called for diplomatic focus and a ceasefire. Sycamore added that while ceasefire discussions may slightly lower oil prices, attention remains on the situation in Lebanon and potential Israeli responses to Iran.
Investors are also awaiting details on potential economic stimulus from Beijing, although analysts expect minimal impact on China’s oil demand, the world’s second-largest. Goldman Sachs held its forecasts for oil, natural gas, and coal steady on Thursday, anticipating only modest boosts to energy prices from Chinese stimulus relative to other key factors like Middle East oil supply and winter natural gas demand.
Goldman forecasts Brent crude in the $70 to $85 range for 2025.
