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Oil prices advanced over $1 a barrel on Friday, with Brent crude futures rising by 1.80% to $74.12 and U.S. West Texas Intermediate (WTI) crude gaining 1.95% to $70.61 per barrel. This comes as the market digests reports of Iran’s alleged plans for a retaliatory strike on Israel from Iraq, as cited by Israeli intelligence sources. This increase underscores a shift in market sentiment as traders respond to regional instability, reinforcing crude prices after recent declines.
See: The 30-minute WTI chart shows a 2.21% upward trend, closing at 70.603 with bullish momentum from recent moving average and MACD crossovers on the VT Markets app.
Despite gains, oil prices still show a weekly drop, pressured by Monday’s 6% fall following an Israeli military operation that targeted Iran’s assets, yet avoided oil and nuclear facilities. With this backdrop, OPEC+ may choose to delay its planned December production increase.
Sources familiar with the group’s discussions indicate that a postponement decision could come next week, reflecting concerns over soft demand and excess supply. Such a move would likely support prices through year-end, particularly if geopolitical risks persist.
Meanwhile, China’s October manufacturing activity showed growth in both private and official surveys, marking the first expansion in six months and suggesting that stimulus measures are gradually boosting industrial demand.
This shift in China’s manufacturing activity aligns with data from the U.S. Energy Information Administration (EIA) revealed that gasoline inventories dropped to a two-year low last week on higher demand, while crude stockpiles also saw an unexpected decline as imports dipped.
On the domestic front, the U.S. remains a critical player, setting a record high production rate of 13.4 million barrels per day in August. WTI’s current rally, nearing $71.80, may find stability at these levels if geopolitical and production factors unfold as anticipated.
See also: Oil Prices Steady on Surprise Drop in US Crude
With the upcoming U.S. election and China’s National People’s Congress meeting, these factors are poised to influence global demand and fiscal policy adjustments, potentially altering the trajectory of the oil market in the near term.
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