Oil set for longest losing streak since May as war concerns ease
BNN Bloomberg
Oil is poised for its longest losing streak since May on signs that the Israel-Hamas war will remain contained for the time being at least, easing concerns over supply disruptions in the Middle East.
West Texas Intermediate traded below US$84 a barrel and was on pace for a fourth straight decline. Prices have erased most gains made after Hamas’s attack on Israel on Oct. 7. The U.S. and Saudi Arabia agreed to pursue diplomatic efforts to maintain stability across the Middle East, the White House said Tuesday, helping to ease fears of major disruptions to the oil market.
“Crude futures moving to a consolidation ‘wait and see’ pattern as the pause in a ground invasion by Israel seems to be ongoing,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities. “Yet Qatar has condemned the bombing by Israel, stating the escalation of the war needs to stop, which has many traders still believing further tensions are probable.”
WTI futures extended losses, and the U.S. prompt-spread weakened, as inventories at the nation’s biggest storage hub at Cushing, Oklahoma, also saw a modest build of 213,000 barrels, inching the total away from operational minimums. US stockpiles rose by 1.37 million barrels last week, according to an Energy Information Administration report Wednesday.
