Oil Prices Resume Gains as Israel Awaits Possible Iranian Attack

Oil prices resumed gains as Israel awaits a possible strike by Iran or its proxies, and traders eye the International Energy Agency's report on supply and demand outlook.

Brent crude futures rose above $90 a barrel after closing 0.8% lower in the previous session.

West Texas Intermediate (WTI) rose, heading towards $86. The United States believes that an attack on Israel is imminent in retaliation for the attack on the Iranian diplomatic compound in Syria last week. 

WTI CRUDE                 $85.47  +0.53%

BRENT CRUDE           $90.22   +0.53%

MURBAN CRUDE      $90.41   +0.75%

NATURAL GAS           $1.770  +0.34%

The escalation of geopolitical tensions, including Russian attacks on energy infrastructure in Ukraine, contributed to the revitalization of the oil options market, which is betting on its rise.

Recent days have seen an increase in demand for call options contracts - which are profitable when prices rise. Call options on Brent crude continue to trade at a higher corresponding price than the corresponding put options.

Crude oil is headed for a weekly loss, but Brent is still up about 17% this year, partly due to OPEC+ supply cuts.

OPEC maintained its strong forecast for global oil demand growth in 2024 in a monthly report yesterday, Thursday, and major traders and Wall Street banks were more inclined to expect higher prices.