Oil Prices Gain Momentum as U.S. Jobs Data Eases Demand Concerns and Middle East Tensions Escalate
By Nicole Jao
In early Asian trading on Friday, oil prices saw a slight dip but were poised to end the week with a more than 3% increase. Brent futures slipped by 9 cents to $79.07 a barrel, while U.S. West Texas Intermediate crude futures were down by a cent at $76.09 per barrel.
Despite the minor decline, both Brent and WTI were on track to record significant gains for the week.
The escalation of conflict in the Middle East, with Israeli forces intensifying airstrikes on Gaza Strip and ongoing attacks by Iran-aligned Houthi militants near Yemen, has raised concerns over oil supply disruptions in the region.
Analysts believe that the recent geopolitical tensions have played a significant role in supporting oil prices, with the killing of senior militant leaders and the declaration of force majeure at Libya's Sharara oilfield adding to the uncertainty.
On the other hand, positive U.S. jobs data showing a decrease in new unemployment claims has helped alleviate fears of an economic downturn, leading to a stronger dollar. However, a stronger dollar typically results in lower oil prices as buyers using other currencies need to pay more for dollar-denominated crude.
Overall, the combination of geopolitical tensions in the Middle East and positive economic indicators in the U.S. has created a mixed outlook for oil prices in the near term.
This situation highlights the importance of staying informed about global events and economic data, as they can have a significant impact on financial markets and individual investments.