Mumbai, 4 Oct (Commoditiescontrol): Crude oil prices edged higher during early Asian trading on Friday, maintaining their strong weekly gains as investors weighed the impact of the ongoing Middle East conflict on global oil supply.
Brent crude futures rose by 9 cents, or 0.12%, to $77.71 per barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 8 cents, or 0.11%, to $73.79 per barrel. Both benchmarks were set for weekly gains of around 8%.
President Joe Biden's remarks on potential U.S. strikes against Iran’s oil facilities, in response to Tehran’s missile attack on Israel, triggered a 5% rally in oil prices. Concerns over possible disruptions in Middle East crude flows, which account for roughly one-third of global supply, have led the market to price in risks, according to ANZ analysts.
Bearish investors unwinding short positions also contributed to the price surge, and the rally could extend if traders start taking bullish stances.
However, these supply concerns have been somewhat mitigated by OPEC’s spare production capacity and the fact that no significant global disruptions have yet materialized from the Middle East unrest.
In a separate development, Libya resolved a crisis affecting its oilfields and export terminals after a leadership dispute over its central bank. This resolution reopened facilities that had significantly reduced oil production. Iran, operating under U.S. sanctions, produced around 4 million barrels per day (bpd) in 2023, while Libya’s output stood at approximately 1.3 million bpd last year, according to the U.S. Energy Information Administration.
Both Iran and Libya are members of OPEC, adding further complexity to the global supply outlook.
(By Commoditiescontrol Bureau: 09820130172)