SINGAPORE (Reuters) – Oil prices were little changed on Friday, but remained on track for strong weekly gains, as investors weighed the prospect of a wider Middle East conflict disrupting crude flows against an amply supplied global market.
Brent crude futures ticked down 8 cents, or 0.1%, to $77.54 a barrel as of 0415 GMT. U.S. West Texas Intermediate crude futures were down 6 cents, or 0.08%, to $73.65 a barrel.
Both benchmarks were headed for weekly gains of about 8%.
Bearish bets on oil have found some room to unwind this week amid mounting concerns over potential supply disruptions in the Middle East, along with optimism that China’s recent economic stimulus efforts may offer some uplift in demand, said IG market strategist Yeap Jun Rong.
“The question now is whether there will be an actual disruption in crude supplies, and that should keep prices in a waiting game over the weekend,” Yeap added.
The U.S. is discussing whether it would support Israeli strikes on Iran’s oil facilities as retaliation for Tehran’s missile attack on Israel, President Joe Biden said on Thursday, while Israel’s military hit Beirut with new airstrikes in its battle against Lebanese armed group Hezbollah.
Biden’s comments contributed to a 5% rally in oil prices on Thursday, as Israel weighs its options after its arch-foe Iran launched its largest-ever assault on Tuesday.
“Supply risks are back in focus as tension in the Middle East rises, but we expect the impact to be limited,” ANZ analysts said in a note.
