Oil prices ended the week on an uptick, influenced by Middle East unrest, overshadowing the International Energy Agency’s (IEA) lowered demand expectations.
Brent crude ended the day up $0.61, or 0.74%, at $83.47 a barrel.
U.S. West Texas Intermediate (WTI) increased by $1.16, or 1.49%, to $79.19. The April WTI contract also rose, gaining $0.87 to $78.46.
Throughout the week, Brent added over 1%, and the U.S. benchmark saw a 3% increase.
The threat of further conflict in the Middle East buoyed oil markets.
Hezbollah’s rocket attacks on an Israeli town as retaliation for civilian deaths in Lebanon underscored the tensions, marking a significant escalation in hostilities.
Despite these developments, the oil market’s reaction remained tempered, with analyst Giovanni Staunovo noting, “Oil continues to flow with minor disruptions.”
In Gaza, Israel’s airstrikes targeted Rafah, highlighting the war’s severity as it besieged Gaza’s largest operational hospital.
The Red Sea also witnessed tension, with a Yemeni missile striking an India-bound oil tanker.
The IEA revised its demand growth forecast for 2024 downward, predicting a slowdown to 1.22 million barrels per day (bpd), influenced by reduced Chinese demand.
This adjustment marks a significant decrease from last year’s growth rate, showcasing the global demand shift.