Oil advanced for a third day putting it on course for a weekly gain as US jobs data supported the case for Federal Reserve rate cuts this year, buoying risk assets.
Brent rose above $84 a barrel after a two-day climb that added about 1%, holding above the 100-day moving average. West Texas Intermediate neared $80. Initial applications for US unemployment benefits increased to the highest level since August, supporting the case for looser monetary policy. The dollar slipped on Thursday, making commodities more attractive for most buyers.
Crude's latest gains belie relatively muted price action, with futures set to log their smallest weekly trading range since March. Prices remain higher this year, aided by OPEC+ supply cuts, solid global demand, and recurrent tensions in the Middle East. The Organization of the Petroleum Exporting Countries and its allies are due to meet next month to decide on output over the second half.
In the Middle East, Israel said it would press on with its fight against Hamas in the Gaza Strip even without help from the US. President Joe Biden had said he would halt additional shipments of offensive weapons to Israel if the country launched a ground invasion into Rafah.
Brent for July settlement rose 0.4% to $84.23 a barrel at 10:05 a.m. in Singapore.
WTI for June delivery advanced 0.5% to $79.67 a barrel.
Source : Bloomberg
