Oil climbs as US sanctions, stockpile forecasts, raise supply concerns
Brent crude oil price news: Brent futures rose 36 cents, or 0.4 per cent, to $86.36 per barrel and U.S. West Texas Intermediate (WTI) crude gained 53 cents, or 0.6 per cent, to $83.44 a barrel at 0052 GMT.
Brent crude oil price news: Oil prices rose on Friday after the US tightened its sanctions programme against Russian crude exports, raising supply concerns in an already tight market, and global inventories are forecast to decline through the fourth quarter. Brent futures rose 36 cents, or 0.4 per cent, to $86.36 per barrel and US West Texas Intermediate (WTI) crude gained 53 cents, or 0.6 per cent, to $83.44 a barrel at 0052 GMT.
Brent is set for a weekly gain of 2.1 per cent, while WTI is set to climb 0.8 per cent for the week, after both contracts surged on Monday on the potential for disruptions to Middle Eastern exports after Hamas' attack on Israel over the weekend threatened a possible wider conflict. Prices gave back some of those gains during week. But, on Thursday, the US imposed the first sanctions on owners of tankers carrying Russian oil priced above the G7's price cap of $60 a barrel, to close loopholes in the mechanism designed to punish Moscow for its invasion of Ukraine.
Russia is the world's second-largest oil producer and a major exporter and the tighter US scrutiny of its shipments could curtail supply. Also on Thursday, the Organization of the Petroleum Exporting Countries (OPEC) kept its forecast for growth in global oil demand, citing signs of a resilient world economy so far this year and expected further demand gains in China, the world's biggest oil importer.
"Supply side issues remained the focus in the crude oil market," Daniel Hynes, senior commodity strategist at ANZ, said in a note on Friday, adding that prices during early trade on Friday rose on the stronger US sanctions enforcement. "Sentiment was also boosted after OPEC said it expects crude stockpiles to slump by 3 (million barrels per day) this quarter. That assumes that there are no further supply disruptions emanating from the Israel-Hamas war," Hynes said.
Markets are awaiting data on China's producer price index, consumer price index and trade activity in September that is due later on Friday for further signs where the world's second-biggest economy is heading.
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