Oil closes slightly higher with escalating tensions in the Middle East; Brent falls more than 3% in the week – Money Times


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Oil ended the day slightly higher with the escalation of tensions in the Middle East, with the Israeli Prime Minister's speeches in focus (Image: REUTERS/Stringer/Archivo)

O oil reduced the week's losses this Friday (27) with conflicts in the Middle East at the center of investors' attention.

The most liquid contracts in Brent oila reference for the international market for December, ended the session with an increase of 0.53%, at US$ 71.98 per barrel, on the Intercontinental Exchange (ICE), in London. For the week, Brent futures fell 3.49%.

The contracts of the West Texas Intermediate oil (WTI) for November rose 0.75%, to US$68.18 per barrel, on the New York Mercantile Exchange (Nymex), in the United States. WTI fell 4.14% for the week.

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What moved oil today?

Oil got a new boost from the escalation of tensions in the Middle East.

Israeli Prime Minister Benjamin Netanyahu condemned Iran and defended Israel's attacks against Iranian-backed fighters in Lebanon and Gaza, in a speech at the United Nations (UN) this Friday (27), while diplomats race to secure a pause in the escalating conflict.

Oil market analysts have been warning for months that a war between Israel and Hezbollah, who have so far been exchanging rocket fire, could force Iran — a member of the Organization of Petroleum Exporting Countries (OPEC) — to intervene directly, increasing oil prices. risk of disruptions in crude oil supplies in the Middle East.

Additionally, data in the United States, such as the University of Michigan's consumer sentiment index, suggested an improvement in North American consumption and the oil demand outlook.

The commodity also continued to reflect the news that the Organization of Petroleum Exporting Countries and Allies (OPEC+) should continue with the increase in production of the commodity in December, in an attempt to “compensate” for voluntary cuts in supply by some members of the group.

According to sources told Reuters, the measure should have a small impact, but it has raised concerns about oil demand amid the slowdown in the world's main economies — such as China.

In recent months, some OPEC members, such as Russia and Saudi Arabia, have been cutting oil production to support prices.

*With information from Reuters

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