Oil ends the first week of 2024 higher

Oil ends the first week of 2024 higher

Oil prices finished the first week of 2024 with a positive trend, attributed to the increasing tensions in the Middle East region. Furthermore, the escalating risks in the Red Sea, caused by the recent attacks on commercial ships, have also impacted the increase in oil prices.

Brent crude futures settled at $78.76 per barrel on Friday, January 5, representing a weekly gain of 2.23% after a 1.51% increase.

Upon settlement, US West Texas Intermediate crude futures rose by 2.24% to $73.81 per barrel, resulting in a weekly gain of 3%.

“Given the current tensions in the Middle East, the geopolitical trading premium is likely to increase,” explained John Kilduff, partner at Again Capital LLC. “Traders may find it difficult to ignore these headlines.”

Despite Thursday’s losses, the two benchmarks closed the first week of the year in the green zone. This was due to significant increases in gasoline and distillate stocks in the United States.

Traders are increasingly concerned about rising tensions in the Middle East, which have been largely ignored since the start of the war between Israel and Hamas.