(Bloomberg) — Oil was steady after a six-day rally ahead of a market outlook from OPEC, and as traders also monitored developments in the Israel-Hamas war.
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West Texas Intermediate traded near $77 a barrel after capping its longest run of daily gains since September. The monthly report from the Organization of the Petroleum Exporting Countries will shed light on global balances as the cartel and its allies curb production. Morgan Stanley recently raised price targets, citing factors including OPEC’s better-than-expected compliance with cuts.
In the Middle East, meanwhile, tensions remain elevated. Israel launched strikes on Rafah in the Gaza Strip in its war against Hamas, even as Iranian Foreign Minister,Hossein Amirabdollahian signaled a possible diplomatic end to the conflict. Tehran-backed Houthi rebels continue to harass vessels in the Red Sea.
Crude has been trading in a band of about $10 a barrel since the start of the year, with nervousness over the conflict in the Middle East and OPEC supply cuts offset by ample output from outside the group and an uncertain demand outlook. China, the biggest importer, has been beset by pervasive deflationary pressures, while Goldman Sachs Group Inc. has highlighted risks to consumption.
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