U.S. crude rose for a second straight week on Friday as Israel prepared to retaliate against Iran.
Brent crude, the U.S. benchmark and global benchmark, gained more than 1% this week. Oil prices have risen more than 10% as of Friday’s close since Iran attacked Israel with ballistic missiles last week.
“Nonetheless, sustaining the bullish momentum in oil prices has proven to be a difficult task: without additional catalysts, the ‘war’ and ‘stimulus’ premium could easily fade,” said Natasha Kaneva, JPMorgan’s global head of commodities strategy. told clients in a report on Friday.
Here are Friday’s closing energy prices:
- West Texas Intermediate Oil November contract: $75.56 per barrel, down 29 cents, or 0.38%. U.S. crude oil prices have risen more than 5% so far this year.
- Brent December contract: $79.04 per barrel, down 36 cents, or 0.45%. The global benchmark has gained more than 2% so far this year.
- RBOB gasoline November contract: $2.1516 per gallon, little changed. So far this year, gasoline leads by more than 2%.
- natural gas November contract: $2.632 per gallon, down 1.61%. Natural gas prices have risen more than 4% so far this year.
According to media reports, Israel’s security cabinet held a meeting on Thursday to discuss the country’s response to the Iranian attack. U.S. President Joe Biden and Prime Minister Benjamin Netanyahu spoke by phone on Wednesday.
Traders worry that Israel will crack down on Iran’s oil industry, which could escalate tensions and cause serious supply disruptions in the Middle East. Biden dissuades Israel from targeting Iranian oil fields. Arab Gulf states are also reportedly lobbying the White House to pressure Israel not to attack Iran’s energy infrastructure.
Helima Croft, global head of commodity strategy at RBC Capital Markets, told clients: “We expect the White House may encourage Israel to target refineries rather than oil export facilities, believing Iran will be more The economic impact is felt directly.
However, Croft warned that U.S. influence may have waned since April, when Israel responded relatively mildly to Iran’s first missile and drone strikes.
