Oil prices continued to rise, set for a second consecutive week of gains, as concerns mounted over the potential for the Israel-Gaza crisis to escalate and disrupt oil supplies in the Middle East, a major global oil-producing region.
Brent crude futures increased by 75 cents to reach $93.13 per barrel, while U.S. West Texas Intermediate crude rose by 67 cents to $90.04 per barrel.
The ongoing conflict and rising fears of supply disruptions coincide with forecasts of a tightening deficit in the fourth quarter, low inventories, and production cuts by major oil producers like Saudi Arabia and Russia. Washington is also replenishing its strategic reserves by purchasing 6 million barrels of crude for December and January. Despite these concerns, analysts believe that a temporary lifting of U.S. sanctions on Venezuela is unlikely to significantly affect the global oil balance, as Caracas' production recovery is expected to be gradual.
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