Cruide Oil: Prices Climb Higher on Middle East Tensions and Positive US Data
U.S. recession subsided and geopolitical tensions in the Middle East rose.
At 0635 GMT, Brent crude futures went up 28 cents or 0.4%, to $79.94 per barrel, whereas West Texas Intermediate crude futures gained 42 cents or 0.6% to end at $77.26.
“Above all else it is last week’s better than expected US data reducing fears of a US recession,” said Tony Sycamore, an analyst at IG markets.
“I am trying to imagine when Iran might take vengeance on Israel over the killing of prominent Hamas and Hezbollah leaders by Tel Aviv. Feels like a matter of when – not if.”
Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr were both assassinated hence Iran and Hezbollah have vowed retaliation.
“Until we get clearer picture what Iranian reaction will be,” said Warren Patterson ING’s head of commodities research.
Besides, Israeli forces intensified their incursion into Gaza with a school compound airstrike that killed more than ninety people according to Gaza Civil Emergency Services but Israel denied that there was exaggeration in the number of deaths by saying figures were skewed. On Sunday however, Hamas expressed doubt about its involvement in new peace talks.
China’s consumer prices rose faster than expected in July, and U.S. weekly jobless claims fell more than expected last week.
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