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Crude Heads For First Weekly Gain In Four On Middle East And US Jobs

Published 10/12/2012, 06:10 AM
Updated 07/09/2023, 06:31 AM
NYF
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Although oil prices slightly retreated on Friday after the US crude rose last week more-than-expected, oil is heading for its first weekly gain in a month due to the increased tensions in the Middle East and the drop in the US jobless claims which improved the outlook for the economy.

U.S. crude inventories rose 1.67 million barrels last week, the Energy Department report showed yesterday, twice as much as expected. Yet gasoline stockpiles fell 534,000 barrels while distillates, including heating oil and diesel, decreased 3.2 million barrels, keeping concerns about tight fuel supplies active.

In the Middle East, tensions between Turkey and Syria continue, sparking fears of potential oil supply disruption from the region; this keeps the oil’s momentum rising due to worries that tensions could spread to some of the major producers in the region, especially Iraq.

Meanwhile, U.S. jobless claims last week fell to the lowest level in more than four years brightening the US economic outlook, while Italian Foreign Minister Giulio Terzi said Europe is prepared to tighten sanctions on Iran, which could add to tensions netween Tehran and the West.

Crude is trading as of this writing at $92.15 per barrel, with the lowest for today being at $92.07 and highest at $92.58 although the Dollar Index slightly dropped on Friday to 79.75 as demand on safe haven eased after the upbeat US jobless claims report yesterday that eased fears about the nation’s recovery.

Brent is trading around the $115.54 per barrel with a drop by 0.15%, yet its losses are limited as Brent is supported by the reduced output at North Sea oilfields due to maintenance.

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