Oil prices increased on Friday amid unresolved disagreements between the Israeli and Hamas delegations for a hostage swap and cease-fire in the Gaza Strip, the ongoing war between Russia and Ukraine, and a positive demand outlook in the US and China.
International benchmark Brent crude traded at $84.32 per barrel at 10.24 a.m. local time (0724 GMT), a rise of 0.52% from the closing price of $83.88 per barrel in the previous trading session.
American benchmark West Texas Intermediate (WTI) traded at $79.72 per barrel at the same time, a 0.58% increase from the previous session that closed at $79.26 per barrel.
According to Israeli media, the Israeli team departed Cairo on Thursday night, following the most recent round of negotiations aimed at achieving a cease-fire in the Gaza Strip.
Media reports, citing anonymous, informed sources, stated, without elaborating, that there are ‘unsolvable disagreements’ between the two sides.
The dwindling possibilities of a cease-fire in the Middle East, where the majority of global oil reserves are located, put upward pressure on oil prices by fueling demand concerns.
The ongoing conflict between Russia and Ukraine continues to put major oil routes at risk due to mutual attacks on energy infrastructure.
On Thursday, a fire broke out from drones that were shot down as a consequence of attacks at an oil storage facility in the Krasnodar area of Russia.
Additionally, recent drone assaults on oil facilities close to Ukraine’s Russian border have forced a halt in operations at several facilities to undergo repairs.
These developments support higher oil prices by raising concerns about supply disruptions.
Meanwhile, data suggesting a positive demand outlook both in the US and China, the world’s biggest oil consumers, put upward pressure on oil prices.
US inventories decreased by around 1.4 million barrels to 459.5 million barrels, in line with market expectations of a 1.43 million barrel decline, according to data released by the Energy Information Administration (EIA) late on Wednesday.
On the other hand, crude oil imports in China, the world’s largest oil importer, increased by 5.45% year-on-year to 10.88 million barrels per day (bpd) last month.
Oil demand in the country is also expected to increase by 680,000 bpd this year, according to the Organization of the Petroleum Exporting Countries (OPEC) latest report.
