Oil prices steady after wild swings, but set for second week of losses
Investing.com-- Oil prices steadied in Asian trade on Friday after a weakened dollar and easing concerns over the Israel-Hamas war spurred wild swings over the prior sessions, although they were still set to close lower for a second straight week.
Crude prices saw some strength this week after the Federal Reserve stood pat on interest rates and offered somewhat dovish signals to the market, which in turn weighed on the dollar and triggered a rally in commodity prices. Oil prices surged over 3% on Thursday.
Dovish signals from the Bank of Japan and the Bank of England also offered some support.
But this was largely offset by declining concerns over the Israel-Hamas war, particularly that it would result in any meaningful disruptions in Middle-Eastern oil supplies.
Brent oil futures rose 0.1% to $86.85 a barrel, while West Texas Intermediate crude futures rose 0.1% to $86.85 a barrel by 20:47 ET (00:47 GMT).
Both major crude contracts were set to lose between 3.5% and 4% for the week- their second consecutive week in red.
Pressure on oil came chiefly from a lack of escalation in the Israel-Hamas war, as other Arab states appeared to show no inclination of joining the conflict directly.
Israel was still carrying out a major ground assault on Gaza, while world powers attempted to broker a cease-fire to get some humanitarian aid into the war-torn region.
Iran also called for an oil supply embargo against Israel, although other members of the Organization of Petroleum Exporting Countries made no such moves.
Weak economic data from China also weighed on crude, as purchasing managers index readings showed that manufacturing activity in the world's largest oil importer unexpectedly shrank in October.
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