Oil futures have risen as geopolitical tension in the Middle East returned to focus, spurring concerns about supply from the region, but uncertainty over Opec+ voluntary output cuts and global fuel demand growth clouded the sector’s outlook, Reuters reports.
Brent crude futures climbed 28 cents, or 0.4 per cent, to $79.16 a barrel by 0018 GMT, while US West Texas Intermediate crude futures were at $74.36 a barrel, up 29 cents, or 0.4pc.
“A re-emergence of geopolitical tension over the weekend has come to the aid of an ailing crude oil price on the reopen this morning,” IG markets analyst Tony Sycamore said.
“Simmering tensions appear to be rising to the surface again in the Middle East, in response to Israel’s renewed attacks in Gaza.”
The resumption of the Israel-Hamas war fuelled the bullish momentum for oil prices, CMC Markets analyst Tina Teng said. “However, oil prices may continue to be under pressure for the time being due to China’s disappointing economic recovery and the ramp-up of US production,” Teng said.
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