(Bloomberg) — Oil edged lower, but remained near the highest level this year as persistent tensions in the Middle East added a risk premium to the market.
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Brent crude traded near $83 a barrel after rallying 8% over the past two weeks, while West Texas Intermediate was close to $79. Qatar said negotiations aimed at securing an Israel-Hamas cease-fire and the release of hostages haven’t progressed as hoped, while Israel warned it could launch a ground offensive in the Rafah area of Gaza as early as mid-March.
The ratcheting up of geopolitical risks in a region that’s the source of around a third of the world’s is supporting prices, with bullish wagers for global benchmark Brent at the highest since 2021. A holiday in the US will likely reduce trading on Monday, although that could be partially offset by the reopening of Chinese markets after the weeklong Lunar New Year holidays.
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