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Oil climbs more than $1/bbl on reports Iran preparing to strike at Israel

Oil rates extended gains on Friday, climbing more than $1 a barrel to pare weekly losses, as geopolitical stress in the Middle East rose following reports that Iran was preparing a retaliatory strike on Israel from Iraq in the coming days.

Brent unrefined futures, which have rolled to the January agreement, climbed $1.31, or 1.80%, to $74.12 a barrel by 0128 GMT.

U.S. West Texas Intermediate crude futures rose $ 1.35, or 1.95%, to $70.61 a barrel after settling up 0.95% in the previous session.

Israeli intelligence recommends Iran is preparing to attack Israel from Iraqi territory in the coming days, possibly before the U.S. presidential election on Nov. 5, Axios reported on Thursday, mentioning two unknown Israeli sources.

The attack is expected to be carried out from Iraq using a. large number of drones and ballistic missiles, the Axios report. added.

Oil prices were also supported by expectations that OPEC+. could postpone December's organized boost to oil production by a. month or more, four sources near to the matter told Reuters on. Wednesday, mentioning concern about soft oil need and increasing. supply. A choice to postpone the boost might come as early as. next week, two of the sources said.

However, rates are set to fall more than 1% for the. week, struggling to recuperate from a 6% loss on Monday after. Israel's strike against Iran's military on Oct. 26 bypassed oil. and nuclear facilities and did not disrupt energy supplies.

In spite of the crude oil market seeking to secure a third. straight day of gains, it has been unable to entirely eliminate. the big space lower that followed Monday's re-open, said IG. market expert Tony Sycamore based in Sydney.

However, WTI's rebound ought to extend back towards where. it closed last Friday at about $71.80, he included, as tensions in. the Middle East went back to focus.

After that, though, all bets are off. I believe it will. depend upon who wins the U.S. election and what fiscal stimulus. details, if any, come from the NPC standing committee conference,. Sycamore stated, referring to major events in the U.S. and China,. world's largest oil consumers, next week.

In China, production activity swung back to development in. October, a private-sector survey revealed on Friday, echoing an. official survey on Thursday that revealed production activity. expanded in October for the first time in six months. Both. surveys suggest stimulus measures are having an impact.

U.S. gasoline stockpiles fell unexpectedly recently to a. two-year low on strengthened need, the Energy Details. Administration (EIA) stated on Wednesday, while unrefined inventories. also posted a surprise drawdown as imports slipped.

The world's biggest oil producer pumped a regular monthly record. high of 13.4 million barrels per day in August, EIA said.

(source: Reuters)