Oil rig is seen at sunset in Rotterdam, Netherlands.
Doha, Qatar: Oil prices climbed about 3% to a one-week high on Friday on worries that tensions in Israel and Gaza could spread into a wider conflict that could disrupt global crude supplies.
Brent futures rose $2.55, or 2.9%, to settle at $90.48 a barrel, while US West Texas Intermediate (WTI) crude rose $2.33, or 2.8%, to settle at $85.54. For the week, Brent was down about 2% and WTI down about 4%.
Early in the session, oil prices soared by more than $2 a barrel after the US military struck Iranian targets in Syria.
Then prices briefly turned negative as markets digested various reports on mediation talks between Hamas and Israel led by Qatar in coordination with the US government.
Israeli air and ground forces were stepping up operations in the Gaza Strip amid reports of heavy bombing of the besieged enclave.
A Hamas official, meanwhile, conditioned the release of hostages in Gaza on a ceasefire in Israel’s bombardment of the Palestinian enclave, launched after a deadly Hamas rampage into southern Israel nearly three weeks ago. Several countries, including many Arab states, have urged Israel to delay a planned ground invasion that would multiply civilian casualties and might ignite a wider conflict.
Asian spot LNG prices were little changed last week, as steady European heating demand supported prices despite forecasts of mild weather in the coming
months.
The average LNG price for December delivery into north-east Asia declined marginally to $17.75 per million British thermal units (mmBtu), industry sources estimated, compared to last week’s near nine-month high of $17.90.
Forecasts of mild weather in Europe eased volatility in a market which has been rocked by supply concerns including a potential second round of Australian strikes, which was called off.
Little spot demand from northeast Asia and an influx of offers and broadly adequate supplies in the region also helped keep prices steady, analysts said.
However, consistent heating demand in Europe has kept prices from falling further.
Traders will watch developments in the Israel-Hamas conflict, as reports of US military strikes on Iranian targets in Syria last week have raised concerns of the conflict widening.
Though the strike has yet to have a direct impact on supply, there are increasing concerns that the conflict in the Gaza Strip between US-backed Israel, and Hamas may spread and potentially disrupt shipments from the region.
