

Market Analysis
Oil prices were relatively stable on Friday, but remained poised for significant weekly gains as investors balanced the risk of a broader Middle East conflict affecting crude supplies against a well-stocked global market.
Brent crude futures slipped by 8 cents, or 0.1%, to $77.54 a barrel as of 0415 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures dropped 6 cents, or 0.08%, to $73.65 a barrel.
Both benchmarks were on track for weekly gains of around 8%.
IG market strategist Yeap Jun Rong noted that bearish positions on oil have eased this week due to rising concerns about potential supply disruptions in the Middle East, coupled with optimism that China's recent economic stimulus measures might boost demand.
"The key question now is whether crude supplies will actually be disrupted, which could leave prices in a holding pattern over the weekend," Yeap commented.
President Joe Biden mentioned on Thursday that the U.S. is considering whether to support Israeli strikes on Iran's oil facilities in retaliation for Tehran's missile attack on Israel. At the same time, Israel's military launched fresh airstrikes on Beirut, targeting the Lebanese armed group Hezbollah.
Biden's remarks contributed to a 5% surge in oil prices on Thursday, as Israel contemplates its response after Iran’s largest-ever assault earlier in the week.
"Supply risks are back on the radar as tensions in the Middle East rise, but we expect the impact to be limited," ANZ analysts said in a note.
Although the region accounts for more than a third of global oil supply, ANZ analysts suggested that a direct attack on Iran’s oil facilities is unlikely, as it would strain Israel's international relations. Furthermore, disrupting Iran's oil revenue could provoke a stronger response, given that Iran may feel it has less to lose.
Earlier concerns about supply disruptions, which had pushed oil prices higher earlier in the week, have been eased by OPEC’s spare production capacity and the fact that global oil supplies have not yet been affected by the Middle East turmoil.
In addition, Libya's eastern-based government and the Tripoli-based National Oil Corporation announced on Thursday that all oilfields and export terminals would reopen following the resolution of a leadership dispute at the central bank, ending a crisis that had significantly reduced oil production.
Both Iran and Libya are members of OPEC. Iran, despite U.S. sanctions, produced approximately 4.0 million barrels per day (bpd) in 2023, while Libya's output was around 1.3 million bpd last year, according to data from the U.S. Energy Information Administration.
Paraphrasing text from "Reuters" all rights reserved by the original author.