Oil futures: Crude extends weekly gains to 3%

24 Oct 2024

Quantum Commodity Intelligence – Crude oil futures Thursday were nudging higher, cementing the week's gains as geopolitical tensions continued to underpin the rebound after tumbling 7% last week. 

Front-month Dec24 ICE Brent futures were trading at $75.17/b (1420 GMT), compared to Wednesday's settle of $74.96/b, as futures continued to claw back the previous week's 7% losses.

At the same time Dec24 NYMEX WTI was trading at $71.07/b, versus Wednesday's settle of $70.77/b.

The Middle East crisis showed no signs of easing, while Israel's widely flagged strike again Iran continued to keep markets on edge.

On the flipside, concerns over slowing demand growth remain a drag on the market, while OPEC+ is scheduled to increase output from December.

"Crude oil futures have settled into a nervous wait-and-see mode, with major two-sided risks keeping prices rangebound and stuck for now," said Ole S Hansen, Head of Commodity Strategy at Saxo Group.

"While the activity points to calm markets, plenty of risks continue to build, which could see the price once again test either of the two mentioned boundaries," added Hansen.

Prices briefly wobbled midweek after data showed a build in US crude stocks, but this was quickly outweighed by geopolitical events.

According to the Energy Information Administration (EIA), commercial crude stockpiles increased by 5.5 million barrels to stand at 426 million barrels. EIA figures also showed domestic production holding at record levels of almost 13.5 million bpd.