Investing.com — Oil prices settled higher on Friday, ending a positive week, as lingering concerns about the conflict in the Middle East kept a risk premium in play.
At 2:30 PM ET (1830 GMT), while the stock rose 2.2% to $71.77 per barrel, the stock rose 2.1% to $75.96 per barrel.
Oil set for weekly gains
Crude benchmarks traded more than 2% higher this week, somewhat reversing steep losses from earlier in October.
A bigger recovery in crude was held back by data showing a bigger-than-expected rise, indicating less tight supplies in the world’s top fuel consumer.
A strong one also weighed on crude, as continued concerns about a slower pace of Federal Reserve rate cuts kept traders favoring the dollar.
Oil prices fell from their weekly highs as speculation over the conflict in the Middle East led to some volatility in the markets.
While Israel presented tough rhetoric against Iran this week, US officials continued efforts to broker a ceasefire, especially before the 2024 presidential elections, which could change future US policy in the Middle East.
Israel has vowed to attack Iran after an attack in early October that left traders on edge over an escalation of the conflict that could potentially disrupt supplies from the Middle East.
The number of oil rigs in the US fell by 2 to 480, according to data from energy services company Baker Hughes on Friday.
Stimulus for China in focus
The recent weakness in oil markets was mainly driven by concerns about slowing demand in top importer China, while a raft of stimulus measures from the country led to limited optimism.
Traders were disappointed by a lack of details from Beijing on the timing and scale of the planned measures, especially on the budget front.
The Standing Committee of the National People’s Congress will now meet in November, where policymakers are likely to decide on plans for more budget spending. The committee was initially scheduled to meet at the end of October, but that was postponed.
“The market remains caught between supply risks related to ongoing tensions in the Middle East and ongoing demand concerns. The prospects for a comfortable oil balance in 2025 will also play a role in the price action,” ING analysts said in a note.
(Peter Nurse, Ambar Warrick contributed to this article.)
