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Oil prices remain stable over ongoing Gaze ceasefire discussions
(MENAFN) Oil prices remained stable on Friday, buoyed by ongoing discussions regarding a potential cease-fire in Gaza, despite heightened supply concerns in the region due to Israel's threats of retaliation against Iran. As of 10:34 AM local time (0734 GMT), the international oil benchmark brent crude saw a slight increase of 0.05 percent, trading at USD74.31 per barrel, compared to the previous session's closing price of USD74.27. Similarly, the US benchmark West Texas Intermediate (WTI) rose by 0.08 percent, reaching USD70.35 per barrel, up from USD70.29.
Tensions in the region escalated when Israel's public broadcaster KAN reported that Israel is poised to attack Iran, a move that comes despite pressure from the United States to de-escalate military actions. Oil traders are now closely monitoring Israel's response to a recent ballistic missile attack from Iran, which may lead to strikes on Tehran's oil infrastructure; however, reports suggest that Israel will primarily target Iranian military installations.
In the meantime, traders have begun to reduce the geopolitical risk premiums associated with oil prices as negotiations for a Gaza cease-fire gain momentum. Qatar has announced plans to host a new round of talks aimed at reaching a breakthrough in the negotiations. Qatari Prime Minister Mohammed bin Abdelrahman Al Thani indicated on Thursday that two delegations from the US and Israel will travel to Doha to participate in these discussions. US Secretary of State Antony Blinken confirmed that the cease-fire talks in Gaza are expected to resume shortly.
On the demand side, investors are keenly awaiting clearer insights into oil consumption trends in the world's largest oil consumers, the United States and China. The outlook for oil demand in these major economies will significantly influence market dynamics, as traders seek to navigate the complexities arising from geopolitical tensions and their potential impact on supply and demand in the global oil market.
Tensions in the region escalated when Israel's public broadcaster KAN reported that Israel is poised to attack Iran, a move that comes despite pressure from the United States to de-escalate military actions. Oil traders are now closely monitoring Israel's response to a recent ballistic missile attack from Iran, which may lead to strikes on Tehran's oil infrastructure; however, reports suggest that Israel will primarily target Iranian military installations.
In the meantime, traders have begun to reduce the geopolitical risk premiums associated with oil prices as negotiations for a Gaza cease-fire gain momentum. Qatar has announced plans to host a new round of talks aimed at reaching a breakthrough in the negotiations. Qatari Prime Minister Mohammed bin Abdelrahman Al Thani indicated on Thursday that two delegations from the US and Israel will travel to Doha to participate in these discussions. US Secretary of State Antony Blinken confirmed that the cease-fire talks in Gaza are expected to resume shortly.
On the demand side, investors are keenly awaiting clearer insights into oil consumption trends in the world's largest oil consumers, the United States and China. The outlook for oil demand in these major economies will significantly influence market dynamics, as traders seek to navigate the complexities arising from geopolitical tensions and their potential impact on supply and demand in the global oil market.
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