(Bloomberg) — Oil rose as tensions in the Middle East ratcheted higher following the death of an Egyptian soldier during a clash with Israeli troops.
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West Texas Intermediate climbed about 1% from Friday’s close toward $79 a barrel, with no settlement on Monday due to a US holiday, while Brent traded near $83. Egypt’s military confirmed that a border guard died at the Rafah crossing into Gaza on Monday, which could escalate tensions with Israel.
Oil has risen this year on persistent geopolitical risks and OPEC+’s roughly 2 million barrels a day of output cuts, which the group is expected to prolong into the second half of the year at a meeting on Sunday. Prices have dipped since early April on disappointing demand from Asia, causing Brent’s prompt spread to get close to a bearish contango structure that indicates supply is increasing relative to consumption.
Investors will also be looking for signs of US fuel demand data after the Memorial Day holiday, which traditionally marks the start of the summer driving season.
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