Oil prices higher on Israel-Hamas fears, OPEC+ meeting in focus

Oil prices rose Thursday, extending the previous session's sharp rebound on raised Middle East following the killing of a Hamas leader in Iran, while a group of top producers meet to discuss output levels.

At 08:35 ET (12:35 GMT), Brent oil futures rose 0.5% to $81.20 a barrel, while West Texas Intermediate crude futures rose 0.4% to $78.18 a barrel.  Israel-Hamas fears in focus after Haniyeh killing

Traders have attached a bigger risk premium to crude amid concerns over retaliation by Hamas against Israel for the killing of its leader Ismail Haniyeh in Tehran on Wednesday. 

Israel made no claim on responsibility for the attack, but it was widely assumed that Jerusalem had carried out the strike.

The killing ramped up concerns over a bigger war in the Middle East, potentially disrupting oil supply from the region, especially with Hamas’ potential retaliation and heightened tensions with Iran, given that the attack happened in its capital. 

Israel continued its offensive in Gaza, and also traded missile strikes with Iran-backed Lebanese group Hezbollah this week. OPEC+ committee set to meet, few changes expected 

The Joint Ministerial Monitoring Committee of the OPEC+ is set to hold an online meeting on Thursday.

Media reports coming before the meeting flagged no changes to the cartel’s production, despite a recent rout in oil prices that took them to near two-month lows.

But top producers Saudi Arabia and Russia are expected to further downplay plans to begin scaling back production cuts.  China concerns limit oil rebound

Bigger gains in oil prices were held back by persistent concerns over an economic recovery in top importer China, especially after a raft of weak purchasing managers index readings this week.

Caixin PMI data showed an unexpected contraction in China’s manufacturing sector, coming in line with a government PMI reading from Wednesday.

The readings ramped up calls for more stimulus measures from Beijing, who has so far provided few actual details on plans to support the economy.

(Ambar Warrick contributed to this item.)

Source: Investing.com