Oil rises for fifth straight session on Mideast tensions and US data By Reuters
Written by Paul Carsten and Robert Harvey
LONDON (Reuters) – Oil prices rose for a fifth consecutive day on Monday, extending gains from last week's rise of more than 3%, as fears of a U.S. recession eased and Middle East supply risks provided support.
Futures were up 88 cents, or 1.1%, at $80.54 a barrel by 1319 GMT while US West Texas Intermediate crude futures were up $1.06, or 1.38%, at $77.90.
“The support comes from last week's expected data, which eased fears of a recession in the US,” said IG markets analyst Tony Sycamore.
“There are also serious concerns about when Iran might look to retaliate for Israel's killing of key Hamas and Hezbollah leaders. It sounds like it's a matter of when, not if.”
Iran and Hezbollah have vowed revenge for the killing of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr.
“The market is still waiting for Iran's response,” said Warren Patterson, ING's head of commodity research.
In addition, Israel's offensive in Gaza intensified on Saturday when an airstrike on a school campus killed at least 90 people, according to the Gaza Civil Emergency Service, although Israel said the death toll had risen. Hamas has cast doubt on its participation in the new ceasefire talks on Sunday.
Brent gained 3.7% last week while WTI rose 4.5%, boosted by economic data and increased hopes of a US interest rate cut.
Three U.S. bankers said last week that inflation appeared to be cooling enough for the Federal Reserve to cut interest rates as soon as next month.
Chinese consumer prices rose faster than expected in July, and weekly US jobless claims fell more than expected last week.
Russia on Monday evacuated civilians from parts of a second region near Ukraine after Kyiv stepped up military operations near the border days after its biggest incursion into Russian territory since the war began in 2022.
Undermining support for prices, OPEC cut its forecast for global oil demand growth in 2024, citing weaker-than-expected data for the first half of the year and softer expectations for China. It also decided what to expect next year.
