Fri. Jul 5th, 2024

NNA – Oil prices increased in early trade on Friday due to comments made by the US Federal Reserve (Fed) Chair on more interest rate hikes and on Israel#39;s ongoing attacks on Gaza, fueling supply fears.

International benchmark crude Brent traded at $80.38 per barrel at 11.02 a.m. local time (0802 GMT), a 0.46% rise from the closing price of $80.01 a barrel in the previous trading session on Thursday.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $76.05 per barrel, up 0.41% from Thursday#39;s close of $75.74 per barrel.

Oil prices boosted after Fed Chair Jerome Powell left the door open for more interest rate hikes to bring down inflation on Thursday.

quot;We know that the ongoing progress toward our 2 percent goal is not assured. Inflation has given us a few head fakes,quot; he said at a policy panel at the 24th Jacques Polak Annual Research Conference, hosted by the International Monetary Fund in Washington, D.C.

quot;If it becomes appropriate to tighten policy further, we will not hesitate to do so,quot; he said.

The American economy expanded 4.9% in the third quarter, beating estimates of 4.3%, according to the Commerce Department#39;s first and advanced readings, putting upward pressure on oil prices.

Meanwhile, the Israeli-Palestinian conflict#39;s intensification continues to drive up supply risks and oil prices.

Israeli warplanes carried out several overnight raids on Gaza hospitals on Thursday, including Al-Shifa, the main hospital in the besieged enclave.

At least six Palestinians were killed and numerous others were injured in a severe bombardment that occurred right outside Al-Shifa Hospital, the official Palestinian news agency Wafa said.

However, weakening China#39;s Price Index, which fell 2.7% yearly and 0.2% monthly in October, and the rise in US crude oil stockpiles by an estimated 11.9 million barrels limited price upswings.mdash;AA

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