Oil prices rose for a fifth consecutive session on Monday, holding on to last week’s more than 3% gains, as U.S. recession fears eased while geopolitical tensions in the Middle East supported prices.
Brent crude futures climbed 22 cents, or 0.3%, to $79.88 a barrel by 0458 GMT, while U.S. West Texas Intermediate crude futures rose 36 cents, or 0.5%, to $77.20.
“Support is coming from last week’s better-than-expected U.S. data which eased fears of a U.S. recession,” IG markets analyst Tony Sycamore said.
“There is also a great deal of anxiety about when Iran might look to avenge Israel’s assassination of key Hamas and Hezbollah leaders. Feels like a matter of when – not if.”
Iran and Hezbollah have vowed to retaliate for the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr.
“The market is still waiting for Iran’s response,” ING’s head of commodities research Warren Patterson said.
In addition, the Israeli incursion into Gaza intensified on Saturday with an airstrike on a school compound that killed at least 90 people, according to the Gaza Civil Emergency Service, though Israel said the death toll was inflated. Hamas cast doubt on its participation in new ceasefire talks on Sunday.
Brent ended last week up more than 3.5% on the week, while WTI gained more than 4%, on supportive economic data and increased hopes of a U.S. interest rate cut.
Three U.S. central bankers said last week that inflation appeared to be cooling enough 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.
(Reporting by Colleen Howe in Beijing and Florence Tan in Singapore; Editing by Jamie Freed)