(Bloomberg) — Oil resumed gains ahead of a report from the International Energy Agency on the market outlook as traders braced for a potential strike on Israel by Iran or its proxies.
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West Texas Intermediate climbed toward $86 a barrel after closing 1.4% lower in the previous session. Brent settled near $90. OPEC maintained its robust outlook for global oil demand growth this year in a monthly report on Thursday, as top traders and Wall Street banks strike a more bullish tone on prices.
Simmering in the background is a possible escalation of hostilities in the Middle East. The US believes an attack on Israel by Iran or its proxies is imminent in response to a strike on its diplomatic compound in Syria last week. Russian attacks on Ukrainian energy infrastructure added to geopolitical tensions.
Oil is on track for a weekly loss but prices are still around 19% higher this year, in part due to OPEC+ supply cuts. The IEA will provide a snapshot of the market later Friday, including the outlook for demand.
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