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Oil gets on Mideast escalation worries, United States rate cut expectations

Oil prices extended gains on Monday on worries a significant spillover in battling from the Gaza dispute into the Middle East might interfere with local oil materials, while impending U.S. rate of interest cuts lifted the worldwide financial and fuel demand outlook.

Brent unrefined futures climbed 37 cents, or 0.5%, to $ 79.39 a barrel by 2300 GMT while U.S. unrefined futures were at $75.19 a barrel, up 36 cents, or 0.5%.

In one of the biggest clashes in more than 10 months of border warfare, Hezbollah fired numerous rockets and drones into Israel on Sunday, as Israel's military stated it struck Lebanon with around 100 jets to thwart a larger attack.

The clash raises fears that the Gaza dispute dangers morphing into a regional conflagration drawing in Hezbollah's. backer Iran and Israel's main ally the United States.

Israel's pre-emptive strike on Lebanon over the weekend to. avoid an impending attack from Hezbollah need to make sure a. more powerful open this morning as (WTI) unrefined seek to extend its. rally initially towards $77.50, before $80.00, IG analyst Tony. Sycamore stated in a note.

Both oil benchmarks got more than 2% on Friday after U.S. Federal Reserve Chair Jerome Powell endorsed an impending start. to rate of interest cuts.

The prospect of reducing monetary policy improved belief. across the product complex, ANZ experts said in a note,. adding it expects the Fed will implement a progressive series of. rate cuts.

Still, oil prices were down recently as a poor outlook for. significant economies weighed on fuel demand, the bank added.

The U.S. Energy Department stated on Friday it purchased almost. 2.5 million barrels of oil to help renew the Strategic. Petroleum Reserve.

The number of running U.S. oil rigs were unchanged at 483. last week, Baker Hughes stated in its weekly report.

(source: Reuters)