Crude Higher Last Week, Watching Middle East Developments

Oil prices were little changed on Friday as the market is waiting and watching developments in the Middle East. WTI fell 0.1% to $88.30/bbl and Brent rose 0.1% to $92.46. The USD index finished 0.1% lower. Earlier in the European session they reached intraday highs of $89.85 and $93.79 respectively. The USD index finished 0.1% lower.

• WTI rose 2.3% last week and Brent 1.8% to be down 0.6% and up 0.3% in October to date.
• Iran has called for an oil embargo of Israel, although most of its crude comes from outside the Middle East. The US is working hard through diplomatic channels to stop the conflict spreading to other parts of the region. Israel warned Hizbullah based in southern Lebanon not to open up a new front.
• Last week the US gave Venezuela 6-month licences to be able to export oil, gas and gold following an agreement between the government and opposition to hold fair elections. This could increase oil supply by around 200kbd but it is unclear how long this will take.