Global oil prices rose for five consecutive sessions on Monday (12/8), extending the increase of more than three percent in the previous week as US recession fears eased and data on Middle East supply risks supported demand.
Brent crude futures LCOc1 were up 88 cents, or 1.1 percent, at $80.54 a barrel by 1319 GMT, while West Texas Intermediate (WTI) crude futures CLc1 were up $1.06, or 1.38 percent, at $77.90.
“Support came from better-than-expected US data last week, which eased fears of a US recession,” said IG market analyst Tony Sycamore.
“There is also a lot of anxiety about when Iran will retaliate for Israel's killing of key Hamas and Hezbollah leaders. It feels like it's a matter of when, not if.”
Iran and Hezbollah have vowed to retaliate for the killing of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr. “The market is still waiting for Iran's response,” said Warren Patterson, head of commodity research at ING.
In addition, Israeli attacks on Gaza escalated on Saturday when an airstrike on a school compound killed at least 90 people, according to Gaza's Civil Emergency Services, although Israel said the death toll was exaggerated. Hamas expressed doubts about participating in new ceasefire talks on Sunday.
Brent rose 3.7 percent last week while WTI rose 4.5 percent, supported by economic data and growing hopes of a US interest rate cut.
Three U.S. central bank officials said last week that inflation appeared to be easing, making it possible for the Federal Reserve to cut interest rates as soon as next month.
China's consumer prices rose faster than expected in July, and U.S. weekly jobless claims fell more than expected last week.
On Monday, Russia evacuated civilians from parts of its second region next to Ukraine after Kyiv stepped up military activity near the border just days after its biggest incursion into Russian sovereign territory since the start of the war in 2022.
Weakening price support, OPEC cut its forecast for global oil demand growth in 2024, citing weaker-than-expected data for the first half of this year and weaker expectations for China. OPEC also cut its expectations for next year. (th/uh)
