Oil prices rise on stock bounce, Gaza conflict By Agence France Presse (AFP)
LONDON: Crude oil prices rebounded strongly on Friday in volatile trade, after earlier losing about $2.5 on profit-taking, as traders fretted over ongoing unrest in the key oil-producing Middle East. New York's main contract, light sweet crude for delivery in February, jumped $1.45 to $46.05 a barrel, after spiking $5.57 Wednesday on the New York Mercantile Exchange. Markets were closed Thursday.
In late London trade, Brent North Sea crude for February was up $1.30 at $46.89 after gains of $5.55 on Wednesday.
"Oil has continued to rise on supply disruption fears due to the conflict in the Middle East," said CMC Markets dealer James Hughes. "We do need to take the recent strong gains with a pinch of salt [because] the thin volumes has meant a continued period of volatility with a lack of news flow."
Israeli warplanes killed three young brothers and demolished a mosque in Gaza on Friday as Hamas vowed to avenge the deadly week-long offensive on its embattled stronghold.
Israeli Prime Minister Ehud Olmert met with senior ministers as tanks and troops waited on the Gaza border where a ground offensive is expected to start within days.
A missile fired by an Israeli jet slammed into a house in southern Gaza, killing three boys, aged from seven to 10. It was one of more than 40 fresh raids carried out in the overcrowded enclave on Friday.
Since Israel unleashed its air and sea campaign, at least 430 Palestinians have been killed, including 65 children, and 2,250 others wounded, according to Gaza medics.
In earlier trading on Friday, prices had dropped by around $2.50 as traders thought "that the rally was overdone on Wednesday," said Platts analyst Dave Ernsberger. He said prices would remain at current levels until US President-elect Barack Obama takes office on January 20 when his policies on the US economy, key oil producer Iran and the Gaza conflict will come to the fore.
The market experienced a tumultuous 2008, soaring to record highs above $147 a barrel in July before a sharp global economic downturn slashed demand for energy and pulled prices sharply lower.
Prices began this week with sharp gains over Gaza.
Analysts said the market had also been supported by evidence that OPEC was cutting output in line with an announcement earlier this month. Previous OPEC cuts have often been met with only partial compliance.
Crude started 2008 by vaulting above $100 for the first time. Continued geopolitical tensions then saw oil rocket to an all-time highs by mid-year. Overall during 2008 oil prices fell by about 54 percent
LONDON: Crude oil prices rebounded strongly on Friday in volatile trade, after earlier losing about $2.5 on profit-taking, as traders fretted over ongoing unrest in the key oil-producing Middle East. New York's main contract, light sweet crude for delivery in February, jumped $1.45 to $46.05 a barrel, after spiking $5.57 Wednesday on the New York Mercantile Exchange. Markets were closed Thursday.
In late London trade, Brent North Sea crude for February was up $1.30 at $46.89 after gains of $5.55 on Wednesday.
"Oil has continued to rise on supply disruption fears due to the conflict in the Middle East," said CMC Markets dealer James Hughes. "We do need to take the recent strong gains with a pinch of salt [because] the thin volumes has meant a continued period of volatility with a lack of news flow."
Israeli warplanes killed three young brothers and demolished a mosque in Gaza on Friday as Hamas vowed to avenge the deadly week-long offensive on its embattled stronghold.
Israeli Prime Minister Ehud Olmert met with senior ministers as tanks and troops waited on the Gaza border where a ground offensive is expected to start within days.
A missile fired by an Israeli jet slammed into a house in southern Gaza, killing three boys, aged from seven to 10. It was one of more than 40 fresh raids carried out in the overcrowded enclave on Friday.
Since Israel unleashed its air and sea campaign, at least 430 Palestinians have been killed, including 65 children, and 2,250 others wounded, according to Gaza medics.
In earlier trading on Friday, prices had dropped by around $2.50 as traders thought "that the rally was overdone on Wednesday," said Platts analyst Dave Ernsberger. He said prices would remain at current levels until US President-elect Barack Obama takes office on January 20 when his policies on the US economy, key oil producer Iran and the Gaza conflict will come to the fore.
The market experienced a tumultuous 2008, soaring to record highs above $147 a barrel in July before a sharp global economic downturn slashed demand for energy and pulled prices sharply lower.
Prices began this week with sharp gains over Gaza.
Analysts said the market had also been supported by evidence that OPEC was cutting output in line with an announcement earlier this month. Previous OPEC cuts have often been met with only partial compliance.
Crude started 2008 by vaulting above $100 for the first time. Continued geopolitical tensions then saw oil rocket to an all-time highs by mid-year. Overall during 2008 oil prices fell by about 54 percent
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