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BEIJING (Reuters) – Oil Prices Hold Steady Amid Geopolitical Tensions and Positive Economic Data
Oil prices showed minimal movement in early Asian trading on Monday, maintaining most of last week’s more than 3% gains. Geopolitical tensions and improved economic data continue to provide support.
Brent futures slipped 7 cents, or 0.09%, to $79.59 a barrel by 0021 GMT, while U.S. West Texas Intermediate crude futures edged up 2 cents, or 0.03%, to $76.86.
“Traders are keeping a close watch on the simmering tensions in the Middle East,” noted analysts at ANZ.
The ongoing risk of escalation in the Israeli-Palestinian conflict is bolstering prices following vows of retaliation from Iran and Hezbollah after the recent assassinations of key leaders.
Over the weekend, the Israeli incursion into Gaza intensified with an airstrike on a school compound, resulting in a reported death toll of at least 90 people, although Israel disputes this figure. Hamas has expressed uncertainty about participating in new ceasefire discussions on Sunday.
At the close of last week, Brent saw a more than 3.5% increase, while WTI posted a gain of over 4%, driven by positive economic indicators and growing expectations of a U.S. interest rate cut.
Three U.S. central bankers indicated last week that inflation levels may be easing enough for the Federal Reserve to consider a rate cut as early as next month.
Additionally, China reported higher-than-expected consumer prices in July, and U.S. weekly jobless claims came in lower than anticipated.
In this article, we discussed the current state of oil prices, which have remained relatively stable amidst geopolitical tensions and positive economic data. The ongoing conflicts in the Middle East, particularly the Israeli-Palestinian situation, have contributed to the support for oil prices. Additionally, the anticipation of a U.S. interest rate cut and encouraging economic indicators have further bolstered the market. As an investor or someone interested in financial markets, it is crucial to stay informed about these factors as they can impact your investment decisions and financial well-being.