Top Stories
Oil holds on to last week’s gains buoyed by Mideast tensions, economic data
Global Banking & Finance Review®
Company
By Colleen Howe
BEIJING (Reuters) – Oil prices were little changed in early Asian trading on Monday, holding on to most of last week’s more than 3% gains, supported by geopolitical tensions and better economic data.
Brent crude futures fell 7 cents, or 0.09%, to $79.59 a barrel by 0021 GMT, while U.S. West Texas Intermediate crude futures rose 2 cents, or 0.03%, to $76.86.
“Traders remain mindful of simmering tensions in the Middle East,” ANZ analysts said in a note.
The risk of an escalation in the Israeli-Palestinian conflict continued to support prices after Iran and Hezbollah vowed to retaliate for the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr.
The Israeli incursion into Gaza intensified on Saturday with an airstrike on a school compound that killed at least 90 people, according to the Gaza Civil Emergency Service, though Israel said the death toll was inflated. Hamas cast doubt on its participation in new ceasefire talks on Sunday.
Brent ended last week up more than 3.5% on the week, while WTI gained more than 4%, on supportive economic data and increased hopes of a U.S. interest rate cut.
Three U.S. central bankers said last week that inflation appeared to be cooling enough for the Federal Reserve to cut interest rates as soon as next month.
China’s consumer prices rose faster than expected in July, and U.S. weekly jobless claims fell more than expected last week.
(Reporting by Colleen Howe; Editing by Jamie Freed)
Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices globally and is used to price two-thirds of the world's crude oil.
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is sourced from North America and is known for its high quality and low sulfur content.
Economic data refers to statistics that provide information about economic performance and conditions. This includes data on employment, inflation, GDP, and other indicators that influence financial markets.
An interest rate cut is a reduction in the interest rate set by a central bank. This action is typically taken to stimulate economic growth by making borrowing cheaper.
Explore more articles in the Top Stories category
