Summary:
Oil surged to $90 on Friday due to tensions in the Middle East. Iran vows retaliation after an alleged Israeli attack on its Syrian embassy.
Oil prices rose back to $90 in early trade on Friday on heightened tensions in the Middle East, where Iran has promised to retaliate for a suspected Israeli air strike on its embassy in Syria.
The two rivalling countries have been trading threats in the aftermath of the aggression. Israeli Foreign Minister Israel Katz swiftly said that "if Iran attacks from its territory, Israel will respond.”
The US government raised its forecast for Crude Oil output, expecting an increase of 280,000 bpd to 13.21 million bpd in 2024, up 20,000 bpd from an earlier forecast from the EIA.
US crude stocks climbed by 5.8 million barrels in the week ended 5 April, more than double the rise of about 2.4 million barrels analysts had expected. Refined products inventories also rose unexpectedly.
With a seasonal demand uptick due over the summer, many traders expect there could be a further rally to come for oil prices in the coming months after prices pierced $90 for the first time in months.
A new Chinese mega refinery received about 170,000 barrels a day of import quotas, pointing to continued gains in demand for the world’s largest importer. The focus will now turn to OPEC's decision in June.
Brent crude was digesting its recent gains with the golden cross pattern signaling strong upward momentum. A retest of the high around $92.50 hit in late October will in the cards if the price continues to push higher.
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