Oil prices extended gains on Monday, buoyed by escalating concerns over potential supply pressures from Middle East producers following Israel’s increased attacks on Iranian-backed forces in the region.
Brent crude futures for November delivery increased 51 cents, or 0.71%, to $72.49 a barrel as of 0330 GMT. That contract expires on Monday, and the more-active contract for December delivery gained 50 cents, or 0.7%, to $72.04.
U.S. West Texas Intermediate crude futures added 43 cents, or 0.63%, to $68.61 a barrel. Last week, Brent fell around 3%, while WTI fell by around 5% as demand worries increased after fiscal stimulus from China, the world’s second-biggest economy and top oil importer, failed to reassure market confidence.
However, prices on Monday were supported by the possibility of a widening Middle East conflict involving Iran, a key producer and member of the Organization of the Petroleum Exporting Countries (OPEC), after Israel stepped up its attacks on the Hezbollah and Houthi militant groups that Iran backs.
While excessive supplies are a key concern for oil markets, markets broadly fear an escalation in the Middle Eastern crisis that could dampen supplies from key producing regions, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
