Oil Posts 4% Weekly Gain amid Assessment of Middle East Risks

Oil prices settled higher on Friday, posting weekly gains of about 4% as markets weighed the ongoing conflict in the Middle East and next month’s U.S. presidential election.

Brent crude futures rose 2.25% to $76.05 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 2.27% to $71.78. Brent and WTI were up 4% and 3.7% respectively for the week.

Latest Oil Prices:

WTI Crude                71.78 +1.59 +2.27%

Brent Crude            76.05 +1.67 +2.25%

Murban Crude        75.02 +1.11 +1.50%

Natural Gas             2.560 +0.038 +1.51%

Louisiana Light       72.08 -0.79 -1.08%

Bonny Light            78.62 -2.30 -2.84%

OPEC Basket           74.70 +0.23 +0.31%

Mars US                  74.75 -1.30 -1.71%

Gasoline                 2.079 +0.051 +2.51%

Investors around the world are buying the dollar, betting on increased volatility in the crucial two weeks leading up to the November 5 US election, as well as elections in Japan, three major central banks making interest rate decisions, and the UK government presenting its new budget.

Prices have been volatile this week, rising on Monday and Tuesday before falling on Wednesday and Thursday, largely linked to expectations of rising or falling risks in the Middle East.

US National Security Council spokesman Sean Savitt said that "the Israeli strikes against military targets" are part of "self-defense and in response to Iran's ballistic missile attack on Israel on October 1".

Investors are also looking to clarify China's stimulus policies, although analysts do not expect such measures to significantly boost demand for oil.

Goldman Sachs on Thursday left its oil price forecast unchanged at $70-$85 a barrel for Brent crude in 2025, expecting the impact of any stimulus in China to be modest compared to larger factors such as oil supplies from the Middle East. 

While, Bank of America expects Brent crude to average $75 a barrel in 2025 in a note.