Oil up 7% on week after swinging on Mideast, US crude build and Russia
Investing.com — “Never a dull moment in the oilfield,” oil services firm Panther says on its website. By that extension, of course, are the oil markets, which seldom go a day, or even hours, without drama.
Friday was one such day. Crude prices jumped as much as 7% on the week — finishing the week with the same heightened nerves as they began — as the Middle East crisis moved into a new heightened phase after Israel said it will begin a ground assault on Gaza a week into its renewed war with Palestine militant group Hamas. The White House announced its first sanctions on companies aiding Russia in selling oil at above the $60 per barrel cap set by the United States and its allies.
New York-traded WTI, crude for delivery in November settled up $4.78, or 5.8%, at $87.69 per barrel, after a session high of $87.83. The US crude benchmark finished the week up just shy of 6%.
London-traded Brent crude for the most-active December contract settled up $4.89, or 5.7%, at $90.89, returning to above the $90-per-barrel sweet spot craved by oil bulls. The session peak for the global crude benchmark was $90.67.
In between Friday and Monday’s 4% rally triggered by Hamas’ opening attacks on Israel in their all-new war, the market plunged on the largest US crude stockpile build since February and a new record for production that overwrote the pre-pandemic one.
Reuters also reported that Saudi state oil firm Aramco (TADAWUL:2222) had notified at least four refiners in North Asia that it would supply them with the full contractual volumes nominated for November. That challenged the notion that Saudi priority was about keeping the market tight with production cuts, not assuring that supplies were generously available as needed.
Prices shot
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