Crude oil prices are poised to end the week on a high note despite facing some early-week challenges. Fresh Israeli airstrikes on Gaza have once again pushed up crude oil prices, as the likelihood of a ceasefire seems increasingly remote. This has led to higher Brent and WTI benchmarks.
In the U.S., stronger-than-expected unemployment figures have eased concerns about the world’s largest oil consumer. Earlier in the week, oil prices had dipped following a disappointing jobs report from the Bureau of Labor Statistics, which revealed a rise in the unemployment rate to 4.3%, reigniting recession fears.
UBS analyst Giovanni Staunovo told Reuters, “The latest U.S. data on jobless claims shows a growing U.S. economy, which reduces some oil demand concerns.”
BOK Financial Securities’ senior VP of trading, Dennis Kissler, noted that a recovering stock market is also alleviating recession fears. He highlighted concerns about potential Iranian retaliation for an Israeli attack that killed a top Hamas commander.
Matador Economics chief economist Tim Snyder warned Reuters, “A large-scale Iranian retaliation could spike crude oil prices, which is a major worry for the market.”
ANZ analyst Daniel Hynes told Reuters that oil prices are recovering from recent drops, driven by increased geopolitical risks. ANZ forecasts a 3% rise in crude oil prices for the week.
Additional support for oil prices came from Libya, where production was disrupted at the Sharara oil field due to protests earlier in the week.