OIL
Brent crude oil prices are trading flat as the European session begins on Friday, but they are set to close the week with gains for the second consecutive time. Recent economic data from the US has revealed a rebound in retail sales.
At the same time, employment figures showed a decline in applications for unemployment benefits, temporarily easing fears of a recession in the world's largest economy and improving the outlook for demand. Meanwhile, tensions in the Middle East remain high, with the looming threat of an Iranian strike on Israel casting a shadow over the world's largest oil-producing region.
Such concerns have fuelled apprehension about the stability of crude supply, which would likely be disrupted in the event of a conflict between these two regional powers. Given this backdrop, the risk is tilted to the upside, with both supply and demand factors favouring higher oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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