Oil Extends Gain After Stockpiles Fall With Focus on Middle East

Posted by Admin October 30, 2024 Bussiness

(Bloomberg) — Oil rose for a second session after US crude inventories shrank, with the market monitoring the Middle East for any potential flare-up.

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West Texas Intermediate traded near $69 a barrel after advancing 2.1% on Wednesday, while Brent closed above $72. US stockpiles of crude, gasoline and distillate — a category that includes diesel — all declined last week, according to data from the Energy Information Administration.

Oil plunged at the start of the week after Israel’s limited retaliatory strike on Iran, and on a renewed push to end the conflict with Hezbollah. However, the market has “relaxed too quickly” over Middle East risks, and a resumption of hostilities could boost prices, according to Standard Chartered Plc.

Commodity and financial markets have two crucial events next week that could whipsaw prices — the US election and a meeting of China’s top legislative body, with investors watching for additional stimulus efforts to revive Beijing’s economy. The Asian nation is the world’s top crude importer.

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